Question

You made $440 in simple interest over 4 years at 5%. How much did you initially put in?

Answer 1

The amount is about 3,520

Answer 2

The initial amount that was put in is $3,520.

Step-by-step explanation:

To find the initial amount, we can use the formula for simple interest:

I = P * r * t

I = interest earned

P = initial amount (principal)

r = interest rate (as a decimal)

t = time period

We are given:

I = $440

r = 0.05 (5% as a decimal)

t = 4 years

Substituting these values into the formula, we get:

$440 = P * 0.05 * 4

Simplifying, we get:

$440 = 0.2P

Dividing both sides by 0.2, we get:

P = $3,520

Therefore, the initial amount that was put in was $3,520.