SOLUTION: Henry opened a savings account. Four years later, he had earned a total of $600 in simple interest. If he made no additional deposits, and the annual interest rate was 5%, what

Question 676298: Henry opened a savings account. Four years later, he had earned a total of $600 in simple interest.
If he made no additional deposits, and the annual interest rate was 5%, what was the initial principal?
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
Henry opened a savings account. Four years later, he had earned a total of $600 in simple interest.
If he made no additional deposits, and the annual interest rate was 5%, what was the initial principal?
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I = P*r*t
600 = P*0.05*4
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600 = P*(5/25)
P = 600/0.2
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P = $3000
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Cheers,
Stan H.
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