Question

Gill opened an account at a different bank. The banks rate of interest was 6%. After one year the bank paid Gill interest. The amount in her account was now $2306

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Answer 1

Explanation:

To solve this problem, we can use the formula for calculating simple interest:

I = P * r * t

where:

I = interest earned

P = principal (initial amount of money)

r = rate of interest

t = time (in years)

We can rearrange the formula to solve for the principal:

P = I / (r * t)

In this case, we know that Gill earned $2306 in interest after one year at a rate of 6%. So:

I = $2306

r = 0.06

t = 1 year

Substituting these values into the formula, we get:

P = $2306 / (0.06 * 1)

P = $38,433.33

Therefore, the initial amount of money that Gill deposited into her account was $38,433.33.