You open your first savings account three months ago so far you have earned 9.80 and simple interest at an annual interest rate of 6%. How much money did you put in the account when you opened it?

Question

Mathematics

Budda

16 August, 11:31

You open your first savings account three months ago so far you have earned 9.80 and simple interest at an annual interest rate of 6%. How much money did you put in the account when you opened it?

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Answers (1)

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Mike Knight · Answer 1

Answer: you put 9.655 in the account when you opened it

Step-by-step explanation:

The formula for determining simple interest is expressed as

I = PRT/100

Where

I represents interest paid on the amount of money deposited.

P represents the principal or amount of money deposited.

R represents interest rate on the deposit.

T represents the duration of the deposit in years.

From the information given,

Amount earned = 9.80

I = 9.8 - P

R = 6%

T = 3 months. There are 12 months in a year. Converting 3 months to year, it becomes 3/12 = 0.25 year

Therefore

9.8 - P = (P * 6 * 0.25) / 100

9.8 - P = 0.015P

0.015P + P = 9.8

1.015P = 9.8

P = 9.8/1.015

P = 9.655