Question

You open your first savings account three months ago so far you have earned 9.80 and simple interest at an annual interest rate of 6%.How much money did you put in the account when you opened it?

Answer 1

Answer: you put 9.655 in the account when you opened it

Explanation:

The formula for determining simple interest is expressed as

I = PRT/100

Where

I represents interest paid on the amount of money deposited.

P represents the principal or amount of money deposited.

R represents interest rate on the deposit.

T represents the duration of the deposit in years.

From the information given,

Amount earned = 9.80

I = 9.8 - P

R = 6%

T = 3 months. There are 12 months in a year. Converting 3 months to year, it becomes 3/12 = 0.25 year

Therefore

9.8 - P = (P × 6 × 0.25)/100

9.8 - P = 0.015P

0.015P + P = 9.8

1.015P = 9.8

P = 9.8/1.015

P = 9.655