Question

Jamie opened a bank account with some initial amount of money. The account earns simple interest at a rate of 15% per year for 2 years. At the end of that time, the account has a value of $4,000. What was the original amount of money that Jamie put in the account?

Answer 1

3076 round up $3077

Explanation:

Answer 2

The initial amount deposited by Jamie is $3076.92 approximately.

SOLUTION:

Given, Jamie opened a bank account with some initial amount of money.

The account earns simple interest at a rate of 15% per year for 2 years.

At the end of that time, the account has a value of $4,000.

r = 15%, t = 2 years, total bank balance = $4000.

We need to find the principal amount.

We know that,

`Simple interest $=\left((p * r * t)/(100)\right)$`

By substituting the values we get,

`$=\left((p * 15 * 2)/(100)\right)$`

`=(30 p)/(100)$`

`$\mathrm{S.} 1=(3 p)/(10)$`

Now, total bank balance = $4000

Initial amount + simple interest = 4000

P + S.I = 4000

`$\mathrm{P}+(3 p)/(10)=4000$`

10p + 3p = 40000

13p = 40000

P = 3076.9230

Hence, the initial amount deposited by Jamie is $3076.92 approximately.