SOLUTION: Please help. Sharon invested money in a savings account at a rate of 6% simple interest. After one year she has $6996 in the account. How much did Sharon originally invest?
T
Algebra ->
Customizable Word Problem Solvers
-> Misc
-> SOLUTION: Please help. Sharon invested money in a savings account at a rate of 6% simple interest. After one year she has $6996 in the account. How much did Sharon originally invest?
T
Log On
Question 27919: Please help. Sharon invested money in a savings account at a rate of 6% simple interest. After one year she has $6996 in the account. How much did Sharon originally invest?
Thanks so much. Answer by bmauger(101) (Show Source):
You can put this solution on YOUR website! Simple interest means that it wasn't compounded. The total amount of money in the bank after a year then is simply what she started with, plus her 6% interest. If we call her original investment x, then the amount of interest after a year is 6% of x or 0.06x. When we add them, we know the total is $6996, so we can write: Combining x's: Divide both sides by 1.06:
So her original investment was $6,600 and after a year 6% ($396) was added to give her a total of $6,996.
(