Question

7

Mike's grandmother opened a savings account in Mike's name and deposited some money into the account. The account pays an
annual simple interest rate of 8%. After 8 years, the interest earned on the account was $5,760. How much money did Mike's
grandmother deposit in the account?
OA. $8,000
OB. $9,500
OC. $10,000
OD. $9,000

Answer 1

Option: D P = 9000

Explanation:

I = PRT

5760 = P * 0.08 * 8

5760 = 0.64P

9,000 = P

Answer 2

we have to use the formula of simple interest, which is

I = P r t

Where I is the interest earned, P is the amount invested, r is the rate of interest and t is the time duration .

In the given question, I = $4840 , r =11% or 0.11, t=11, P is unknown .

Substituting the values in the formula, we will get

4840=0.11*11*P4840=0.11∗11∗P

4840=1.21 P4840=1.21P

P=4000

So she invested $4000