SOLUTION: Madison invested in a certificate of deposit for 4 years at a 6% interest rate. At the end of the 4 years , the value of the certificate of deposit was $ 3,100. How much did Madiso

Algebra.Com
Question 1149453: Madison invested in a certificate of deposit for 4 years at a 6% interest rate. At the end of the 4 years , the value of the certificate of deposit was $ 3,100. How much did Madison deposit originally?
Answer by Boreal(15235)   (Show Source): You can put this solution on YOUR website!
Assume simple interest
i=prt
4 years at a 6% interest rate is 0.24x interest, where x is the principal.
therefore, starting principal x +0.24x interest =3100
this is 1.24 x=$3100
x=$2500 starting principal

RELATED QUESTIONS

Mr. Money invested $10,000 in a certificate of deposit (CD) for three years at a rate of... (answered by stanbon)
$2000 is invested in certificates of deposit. Some of the $2000 is placed in a 4% simple... (answered by fractalier)
Abbi invested $1,500 in a certificate of deposit with a simple interest rate of 4%. Find... (answered by greenestamps)
$2000 is invested in certificates of deposit. Some of the $3000 is placed in a 4% simple... (answered by jorel1380)
Pep invested x dollars in a savings account and y dollars in a certificate of deposit,... (answered by MathTherapy)
A debt of x, with interest rate of 7% compounded annually will be retired at the end of... (answered by Theo)
A debt of x pesos, with interest rate of 7% compounded annually will be retired at the... (answered by Theo)
a)find the value of an annuity with a periodic deposit of $3000 at the end of each year, (answered by rfer)
Using A=P(1+r/n)^nt A total of $800 is invested in a 7% certificate of deposit for... (answered by MathTherapy)