SOLUTION: A certain bank pays 12.5% per annum simple interest. How much money must a man have originally in the bank if he received $650 as interest in 2 years

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Question 1147443: A certain bank pays 12.5% per annum simple interest. How much money must a man have originally in the bank if he received $650 as interest in 2 years
Found 2 solutions by ikleyn, greenestamps:
Answer by ikleyn(52792)   (Show Source): You can put this solution on YOUR website!
.

From the condition, you have this equation for the interest after 2 years


    650 = X*0.125*t,     (1)


where X is the unknown amount under the question, t is the maturity time.



From this equation,    X =  =  = 2600 dollars.


ANSWER.  The original deposit was 2600 dollars.

Solved.

Thanks to tutor @greenestamps for valuable note.

--------------------

To see many other similar solved problems on simple interest accounts, look into the lesson
    - Simple interest percentage problems
in this site.


Answer by greenestamps(13200)   (Show Source): You can put this solution on YOUR website!


For tutor @ikleyn....

The $650 is the amount of interest in 2 years, not the total value at the end of 2 years.
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