Question

If the interest earned on an account after 7 years at 6% is $1785 ,what is the initial value

Answer 1

$4250

Explanation:

i = prt

or

p = i / rt

where,

i = $1,785

r = 6% = 0.06

t = 7 years

So, we can calculate initial vale by putting the values in above equation;

p = $1,785 / (0.06 x 7)

p = $1,785 / 0.42

p = $4,250

Hence the initial value will be $4250