Question

what was the original principal for an 8% simple interest bank account that holds $4340 after 3 years?

Answer 1

The principal amount is $\ 3500$

SOLUTION:

Given that, simple interest $8\%$; $\ 4340$ after 3 years

We have to find the principal.

Now, let the principal amount be p.  

Then, $\text { Simple Interest }=\frac{p \times 8 \times 3}{100}=\frac{p \times 24}{100}$

Now, we know that, Balance = Principal amount + Simple Interest  

$\begin{array}{l}{\rightarrow \ 4340=p+\frac{24 p}{100}} \\\\ {\rightarrow 4340=p\left(1+\frac{24}{100}\right)} \\\\ {\rightarrow 4340=p \times \frac{100+124}{100}} \\\\ {\rightarrow p=4340 \times \frac{100}{124}} \\\\ {\rightarrow p=35 \times 100} \\\\ {\rightarrow p=3500}\end{array}$