Question

Suzanne opened a savings account 60 months ago and made no additional deposits or withdrawals. The account earned 3.4% simple interest per year. At the end of 60 months, the account had earned $229.50 in interest. What was the principal amount that Suzanne invested in the account?

Answer 1

For example, if you put $10,000 into a savings account with 3% interest compounded monthly: After five years, you'd have $11,616. You'd earn $1,616 in interest.