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?
1 answer:
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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