Question

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

Answer 1

Answer:

The original deposited amount in the bank is $3500.

Step-by-step explanation:

Here. Let us assume the principal amount deposited in bank =  $P

The rate of interest = 8%

Total Amount in the bank after time period  =  $4340

Time Period = 3 yrs

Now, SIMPLE INTEREST $= \frac{P \times R \times T}{100}$

⇒ SI = $SI = \frac{P \times 8 \times 3}{100} = 0.24P$

or Interest =  0.24 P

Now, AMOUNT  = PRINCIPAL + INTEREST

⇒$4340  = P +  0.24 P

or, 4340 = 1.24 P

⇒ P = 1340 / 1.24 = 3500

Hence, the deposited amount in the bank for the duration of 3 years and interest rate 8%  is $3500