Question

kwasi deposited some money in his savings account for 5years . The bank pays simple interest at 8% per annum. if the interest he received was Gh¢160.00, how much did he pay into his account​

Answer 1

$400.00

Explanation:

Simple interest formula

I = Prt

where:

• I = interest
• P = principal
• r = interest rate (in decimal form)
• t = time (in years)

Given:

• I = $160.00
• r = 8% = 0.08
• t = 5 years

Substitute given values into the formula and solve for P:

⇒ 160 = P · 0.08 · 5

⇒ 160 = 0.4 P

⇒ P = 160 ÷ 0.4

⇒ P = $400