Question

Lian invested an amount of money at an interest rate of 5.2% per year.

After one year, she received interest of 338 dollars.

Work out the amount of money Lian invested.

Answer 1

$6500

Explanation:

Let the amount of money invested by Lian be $x

Interest rate = 5.2% per year

interest earned in first year will be 5.2% of amount of money invested by Lian .

(note: since in first year there will be no interest accrued on interest so interest for first year is simple interest )

interest earned in one year if money invested by Lian is $x

= 5.2% of $x (1)

But , it is given in one year she received interest of 338 dollars

so, 338 dollars must be equal to 5.2% of $x

equating $338 with 5.2% of $x , we have

5.2% of x = 338

=> (5.2/100) * x = 338

=>5.2 x = 338*100

=> x = 33800/5.2 = 6500.

Thus, amount of money Lian invested is $6500.