Question

In 5 years, a bank account with a 4.5% annual interest rate earned $3,375 as simple interest. What was the principal amount of the account.

Answer 1

Answer:

$375.00

Step-by-step explanation:

Answer 2

Answer: $15000

Step-by-step explanation:

The formula to calculate the simple interest is given by :-

$S.I.=P\times r\times t$, where P is the principal amount , r is the rate of interest and t is the time period.

Given: Interest amount = $3,375

Rate of interest = 4.5%=0.045

Time period = 5 years

Let P be the principal amount, then we have

$3375=P\times 0.045\times 5\\\\\Rightarrow\ P=\dfrac{3375}{0.045\times 5}=15000$

Hence, the principal amount of the account was $15000.