Question

Trevor and $826 on account during 2.5% annual interest for seven years.

How much money did he invest?

Answer 1

Trevor invested $ 4720

Solution:

Given that, Trevor earned $ 826 on account during 2.5% annual interest for seven years

We can simple interest formula

The formula for simple interest is given as:

$\text{ Simple Interest } = \frac{p \times n \times r}{100}$

Where,

"p" is the principal

"n" is the number of years

"r" is the rate of interest

Here given that,

Principal = p = ?

rate of interest = r = 2.5 %

number of years = n = 7

Simple interest earned = 826

Substituting the values in above formula,

$826 = \frac{p \times 7 \times 2.5}{100}\\\\82600 = p \times 7 \times 2.5\\\\82600 = 17.5p\\\\p = \frac{82600}{17.5}\\\\p = 4720$

Thus he invested $ 4720