Question

Trevor and $826 on account during 2.5% annual interest for seven years.

How much money did he invest?

Answer 1

Trevor invested $ 4720

Solution:

Given that, Trevor earned $ 826 on account during 2.5% annual interest for seven years

We can simple interest formula

The formula for simple interest is given as:

`\text{ Simple Interest } = (p * n * r)/(100)`

Where,

"p" is the principal

"n" is the number of years

"r" is the rate of interest

Here given that,

Principal = p = ?

rate of interest = r = 2.5 %

number of years = n = 7

Simple interest earned = 826

Substituting the values in above formula,

`826 = (p * 7 * 2.5)/(100)\\\\82600 = p * 7 * 2.5\\\\82600 = 17.5p\\\\p = (82600)/(17.5)\\\\p = 4720`

Thus he invested $ 4720