Using the Menzi Ltd fixed deposit (Umlazi Bank) information for the year ended 28 February 2026, where interest on fixed deposit is R36,000 and a new deposit made on 1 June 2025 at 7.5% p.a. earned interest of R6,750 (interest not capitalised), calculate the total fixed deposit balance on 28 February 2026.

What you are solving for

You are given total interest earned during the year, plus the interest portion that relates to a new fixed deposit made partway through the year. Since interest is not capitalised, the fixed deposit balance is just the total principal invested.

Separate the interest: new deposit vs existing deposit

Total interest for the year:

• $R36,000$

Interest earned on the new deposit (from 1 June 2025):

• $R6,750$

So, interest earned on the existing deposit is: $$ R36,000 - R6,750 = R29,250 $$

Find the amount of the new fixed deposit (9 months at 7.5%)

The new deposit ran from 1 June 2025 to 28 February 2026, which is $9$ months.

Use simple interest: $I = P \times r \times t$

$$ 6,750 = P \times 0.075 \times \frac{9}{12} $$

$$ P = \frac{6,750}{0.075 \times \frac{9}{12}} = \frac{6,750}{0.05625} = 120,000 $$ So, new fixed deposit principal $= R120,000$.

Find the amount of the existing fixed deposit (full year at 7.5%)

Assuming the existing fixed deposit was invested for the full financial year (12 months), $t = 1$ year:

$$ 29,250 = P \times 0.075 $$

$$ P = \frac{29,250}{0.075} = 390,000 $$ So, existing fixed deposit principal $= R390,000$.

Total fixed deposit on 28 February 2026

Because interest is not capitalised, the balance is the sum of the principals: $$ R390,000 + R120,000 = R510,000 $$

So, the total fixed deposit on 28 February 2026 is $\boxed{R510,000}$.