Question

Jonah earned 150.36 in interest on an account that earns 1.4% simple interest. If Jonah opened the account 12 years ago, what was the principal amount?A) $850B) $868C) $880D) $895E) $ 902

Answer 1

To find the principal amount, we can use the formula: Principal amount = Interest / (Rate * Time). Plugging in the given values, the principal amount is approximately $895.71.

Step-by-step explanation:

To find the principal amount, we can use the formula:

Principal amount = Interest / (Rate * Time)

In this case, the interest earned is $150.36, the rate is 1.4%, and the time is 12 years. Plugging in these values into the formula, we get:

Principal amount = $150.36 / (0.014 * 12)

Principal amount = $150.36 / 0.168

Principal amount ≈ $895.71

Therefore, the principal amount is approximately $895.71.