SOLUTION: what sum of money invested for 5 years at a 12 percent per annum gives an interest of $264

Question 1147001: what sum of money invested for 5 years at a 12 percent per annum gives an interest of $264
Answer by ikleyn(52905) (Show Source): You can put this solution on YOUR website!
.

Since the problem is silent about the type of the account (simple or compound interest), I can assume, by default, 
that it is simple interest.


Then the formula for the interest is 


    I = A*r*t


where I is the interest for "t" years, "r" is the annual rate and A is the initial amount at the account (the initial deposit).


Thus we have an equation


    264 = A*0.12*5.


From this equation find A, which will be your answer.

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