contestada

You want to put some money in a simple interest account. It pays 8% interest annually for 2 years. You would like to earn $500 in interest. How much money do you need to put in?

Respuesta :

Rate p.a. = 8%
Time = 2 years
SI     = $ 500
Principal = ??
Principal = SI*100/ R*T
               = 500*100/8*2
               = 50000/16
               = $ 3125

Therefore, the amount you put in is $ 3125
I = PRT
500 = P x 0.08 x 2
500 = P x 0.16
(Divide both sides by 0.16)
P = 500/0.16
Principle = 3,125

Otras preguntas

Q&A Education