Question

Hayden earned $1800 in interest on an account that had 4.5% simple interest. If the money was in there for 8 years, how much money did he start with?

a) $2,000
b) $2,400
c) $3,600
d) $4,000

Answer 1

Hayden started with $5000.

Step-by-step explanation:

To find the amount of money Hayden started with, we can use the formula for simple interest:

Interest = Principal * Rate * Time

Given that the interest earned is $1800, the rate is 4.5%, and the time is 8 years, we can plug these values into the formula:

$1800 = Principal * 0.045 * 8

Simplifying the equation, we get:

Principal = $1800 / (0.045 * 8) = $5000

Therefore, Hayden started with $5000.