Question

Tom started a savings account that earned $168 an interest in eight years with an annual rate of 7% simple interest what was the original amount in the account

Answer 1

Answer:$300

Explanation:

S.I=P×R×T/100

S.I =Simple interest

P=principal amount

R=Rate

T=Time

100×S.I/R×T=P

100×168/7×8

=16800/56=$300

Answer 2

Explanation:

I = PTR/100

Given from the question:

I = $168

R = 7%

T = 8

P = ?

Substituting into the formula , we have

168 = P X 8 X 7 / 100

168 X 100 = 56P

16800 = 56P

Therefore

P = 16800/5

P = 300

Therefore the original amount in the account is $ 300