Question

Camille invested money into an account that earned annual simple interest with a rate of 6.5%. She made no additional deposits or withdrawals, and after 9 years she had earned $1,755 in interest. What was the amount of Camille's initial investment ?

Answer 1

Given:

Rate(R)= 6.5

Time(T)=900

Amount(A) = $1755

Initial amount = principal = P =?

Amount(A) = Principal(P) + Interest(I)

1755 = P + I

I = 1755 - P --------------------------------------(1)

Reacall the Simple Interest formula

`I=(P* R* T)/(100)`

Substitute I from equation (1) into the above.