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

$3077

Explanation:

Answer 2

3076.92 $

Explanation:

Given: Amount at the end of 2 years (A)= 4000 $

Rate of simple interest (r) = 15% per year = 0.15

Time (t) = 2 years

To find: Initial amount (Principle) = P

Sol:

Amount (A) = P (1+ rt)

`4000 = P (1 + 2 * 0.15)`

`4000 = P (1 + 0.30)`

`4000 = P (1.30)`

`P = (4000)/(1.30) = (40000)/(13) = 3076.92`

Therefore, the original amount of money put by Jamie in the account is 3076.92$.