Question

If the balance at the end of eight years on an investment of $230 that has been invested at a rate of 3% is $285.20, how much was the interest

Answer 1

The interest credited after investment is $55.2

Explanation:

Given as :

The investment principal amount = p = $230

The Amount after 8 years of investment = A = $285.20

The Time period for investment = 8 years

The rate of interest applied = r = 3%

Let The interest credited after investment = I

Now, According to question

From Compound Interest

Amount = Principal ×
`(1+(\textrm rate)/(100))^(\textrm time)`

And Interest = Amount - Principal

Or, I = A - p

Or, I = $285.20 - $230

∴ I = $55.2

So, The interest credited after investment = I = $55.2

Hence, The interest credited after investment is $55.2 Answer

Answer 2

The interest that is obtained from that investment is $55.2

Explanation:

If the balance at the end of eight years on an investment of $230 that has been invested at a rate of 3% is $285.20, so the principal of investment is $230 and the matured sum is $285.20.

Now, we know that Principal + Interest = Matured sum.

Hence, the interest that is obtained from that investment is $(285.2 - 230) = $55.2 (Answer)