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
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If he made no additional deposits, and the annual interest rate was 6%, what
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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
