Question

Eloise invested at 3.5% pa simple interest over 4 years. If her total interest is $910, how much did she originally invest?

Answer 1

$798.25

Explanation:

For this problem, we will use a modified version of the simple interest formula:

`P=(A)/((1+rt))`

A = total amount

r = interest rate (decimal)

t = time

First, change 3.5% into a decimal:

3.5% ->
`(3.5)/(100)` -> 0.035

Now, lets plug the values into the equation:

`P=(910)/((1+(0.035)(4)))`

`P=798.25`

Eloise originally invested $798.25