Question

Lily invested $5000 at 3% interest componded annually. What is the balance in the

account after 8 years?

Answer 1

Principal = 20833.334

Explanation:

simple interest = $5000.

Rate = 3%

Time = 8 years.

Principal = ?

Principal =

`= (100 * simple \: interest)/(r * t) \\ = (100 *5000 )/(3 * 8) \\ = (500000)/(24 \\ ) \\ = 20833.334`

Principal = $20833.334.