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Sliva [168]
3 years ago
11

Kelly earns $178.50 in interest on an account that earns simple interest at a rate of 4%. If she kept the money in the account f

or 5 years, how much was the principle amount?
Mathematics
1 answer:
Otrada [13]3 years ago
7 0

Answer:

  $892.50

Step-by-step explanation:

The amount of interest earned is given by ...

  I = Prt

Filling in the given values, we have ...

  $178.50 = P·0.04·5

Dividing by 0.20 gives ...

  $178.50/0.20 = P = $892.50

The principal amount in Kelly's account is $892.50.

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