Question

1. If money is deposited in a bank that pay's simple interest of 4.5 %, bow much will have to be deposited to earn $90 of interest for 8 months​

Answer 1

The amount of 3000 will have to be deposited to earn $90 of interest for 8 months, if money is deposited in a bank that pay's simple interest of 4.5%.

Step-by-step explanation:

The given is,

Simple interest of 4.5 %

Earn $90 of interest for 8 months​

Step:1

Formula to calculate the simple interest method,

`F=P(1+iN)`...................................(1)

Where,

F - Future amount

P - Initial investment

i - Rate of interest

N - Number of years

From given,

i - 4.5%

Let, X - Initial investment, P = X

F = P + Interest amount

F = X + 90

From the equation (1),

`(X+90)=X(1+(0.045)(0.667))`

(∵ N = 8 months =
`(8)/(12)` = 0.667 year )

`(X+90)=X(1+(0.03))`

`(X+90)=X(10.03)`

`(X+90)=1.03 X`

`90=1.03X-X`

`90=0.03X`

`= (90)/(0.03)`

= 3000

P = X = $ 3000

From the X value.

F = P + 90

= 3000 + 90

F = $ 3090

Result:

The amount of 3000 will have to be deposited to earn $90 of interest for 8 months, if money is deposited in a bank that pay's simple interest of 4.5%.