SOLUTION: Elsa placed some money in a savings account for two years with a 6% interest rate. If the bank pays her $264 in interest, how much money did she initially put into the savings acco

Algebra ->  Customizable Word Problem Solvers  -> Finance -> SOLUTION: Elsa placed some money in a savings account for two years with a 6% interest rate. If the bank pays her $264 in interest, how much money did she initially put into the savings acco      Log On

Ad: Over 600 Algebra Word Problems at edhelper.com


    

Question 1150029: Elsa placed some money in a savings account for two years with a 6% interest rate. If the bank pays her $264 in interest, how much money did she initially put into the savings account?
Found 2 solutions by Boreal, MathTherapy:
Answer by Boreal(15235) About Me  (Show Source):
You can put this solution on YOUR website!
interest=prt
p unknown r is 0.06, t=2
264=p*0.06*2
264/0.12=p
p=$2200

Answer by MathTherapy(10549) About Me  (Show Source):
You can put this solution on YOUR website!

Elsa placed some money in a savings account for two years with a 6% interest rate. If the bank pays her $264 in interest, how much money did she initially put into the savings account?
If the principal is in the account for the 2 years, interest will be compounded, and so, it won't be SIMPLE INTEREST!