Question

A savings account earns simple interest at a rate of 6% per year. Last year the account earned $10.86 in interest. What was the balance in the account at the beginning of last year?

Answer 1

In this case, you have to find out the number whose 6% is 10.86.

So, Let the number be x.

x * 6/100 = 10.86

x * 6 = 1086

x = 181.

So, the account balance at the beginning of last year was $181.

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Answer 2

The balance in the account at the beginning of last year was $181.

Explanation:

Consider the provided information.

A savings account earns simple interest at a rate of 6% per year.

6% can be written as: 6/100=0.06

Last year the account earned $10.86 in interest.

Let the amount invested is represented by x.

`0.06* x=10.86`

`x=(10.86)/(0.06)`

`x=(1086)/(6)`

`x=181`

Hence, the balance in the account at the beginning of last year was $181.