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 i

Question

Nonamiya [84]

2 years ago

10

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 i

n interest. How much money do you need to put in?

Mathematics

2 answers:

Arte-miy333 [17] · Answer 1 · 2022-02-13T14:09:43+03:00

Arte-miy333 [17]2 years ago

4 0

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

kati45 [8] · Answer 2 · 2022-02-13T12:47:12+03:00

kati45 [8]2 years ago

3 0

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