SOLUTION: A certain bank pays 12.5% per annum simple interest. How much money must a man have originally in the bank if he received $650 as interest in 2 years
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Question 1147443: A certain bank pays 12.5% per annum simple interest. How much money must a man have originally in the bank if he received $650 as interest in 2 years Found 2 solutions by ikleyn, greenestamps:Answer by ikleyn(52792) (Show Source):
From the condition, you have this equation for the interest after 2 years
650 = X*0.125*t, (1)
where X is the unknown amount under the question, t is the maturity time.
From this equation, X = = = 2600 dollars.
ANSWER. The original deposit was 2600 dollars.
Solved.
Thanks to tutor @greenestamps for valuable note.
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To see many other similar solved problems on simple interest accounts, look into the lesson
- Simple interest percentage problems
in this site.
