document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1091200>Question 1091200</A>: <I><SPAN STYLE=\"word-break: break-all;\"> A certain bank pays 12 1/2% (Fraction) per annum simple interest. How much money must a man have in the bank if he will receive $650 interest in 2 years? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #705582 by </B><A HREF=/tutors/aboutme.mpl?userid=EMStelley><B>EMStelley(208)</B></A><img src=\"/images/stars/stars-09.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=EMStelley><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=EMStelley><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=705582\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> The formula for simple interest is<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=A+=+P%281%2Brt%29 ALIGN=MIDDLE  ALT=\"A+=+P%281%2Brt%29\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "where A is the final amount, P is the principal (initial) amount, r is the rate in decimal form, and t is the number of years.<BR>\n" );
document.write( "This question is a little different than the norm, in the sense that we are not giving the principal or final amount, but rather a way to connect the two.  We want to have made $650 after 2 years.  So if we put P dollars in, we want to receive (P + 650) at the end of 2 years.  So for us, A = P + 650.  Our rate in decimal form is 0.125 and our t is 2.  So let's set that equation up.<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=P+%2B+650+=+P%281+%2B+0.125%2A2%29 ALIGN=MIDDLE  ALT=\"P+%2B+650+=+P%281+%2B+0.125%2A2%29\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=P+%2B+650+=+P%281.25%29 ALIGN=MIDDLE  ALT=\"P+%2B+650+=+P%281.25%29\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "Subtracting P from both sides, we get<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=650+=+0.25P ALIGN=MIDDLE  ALT=\"650+=+0.25P\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "Thus, P = 2600.<BR>\n" );
document.write( "So if the man wants to make $650 after 2 years, he needs to put $2600 in the bank initially. </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );