A savings account earns simple interest at a rate of 6% per year. Last year the account earned $10.86 in interest. What was the balance in the account at the beginning of last year?

Question

Mathematics

Harold Huynh

11 January, 19:31

A savings account earns simple interest at a rate of 6% per year. Last year the account earned $10.86 in interest. What was the balance in the account at the beginning of last year?

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Jeffery Mcintosh · Answer 1

In this case, you have to find out the number whose 6% is 10.86.

So, Let the number be x.

x * 6/100 = 10.86

x * 6 = 1086

x = 181.

So, the account balance at the beginning of last year was $181.

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