Question

Find the principal invested in $800 interest is earned and eight years at an interest rate of 4%

Answer 1

Given:

Principal: P

Interest rate: 4% (without mentioning in details, this is annual interest rate)

Interest earned: 800$

Find:

Principal

Solution:

The amount of money after 8 years with annual rate 4% is calculated by:

A = P x (1 + 4/100)^8 = 1.369 x P

A - P = 800

=> 1.369 x P - P = 800

=> 0.369 x P = 800

=> P = 800/0.369 = 2168.022$

Hope this helps!

:)

Answer 2

2500 Bucks

Explanation:

Interest is equal to the product of the principal amount multiplied by the rate of interest and time and also divided by 100