SOLUTION: Henry opened a savings account. Four years later, he had earned a total of $960 in simple interest. If he made no additional deposits, and the annual interest rate was 6%, what

Question 676913: Henry opened a savings account. Four years later, he had earned a total of $960 in simple interest.
If he made no additional deposits, and the annual interest rate was 6%, what was the initial principal?
Answer by partha_ban(41) (Show Source): You can put this solution on YOUR website!
We know I = Prt
where I = Interest earned = 960
P = Principal = ?
r = rate of interest = 6% = 6/100
t = time = 4
So,
24P/100 = 960
24P = 960 * 100
P = 960*100/24 = 4000
Therefore the initial principal = $4,000
RELATED QUESTIONS
Henry opened a savings account. Four years later, he had earned a total of $600 in simple (answered by stanbon)

Henry opened a savings account. Four years later, he had earned a total of $240 in simple (answered by rfer)

4. Ike opened a savings account with a deposit of $4,000. Three years later, he had... (answered by rfer)

Ike opened a savings account with a deposit of $5,000. Three years later, he had earned a (answered by rfer)

Sam opened a money market account that pays 3% simple interest. He started the account... (answered by addingup)

you put 1500 in a simple interest savings account two years later the total account... (answered by josgarithmetic)

A man invests a total of in two savings accounts. One account yields 9% simple interest... (answered by stanbon)

A man invests a total of in two savings accounts. One account yields 9% simple interest... (answered by lynnlo)