Question

Eloise invested at 3.5% pa simple interest over 4 years. If her total interest is $910, how much did she originally invest?

Answer 1

Answer:

$798.25

Step-by-step explanation:

For this problem, we will use a modified version of the simple interest formula:

$P=\frac{A}{(1+rt)}$

A = total amount

r = interest rate (decimal)

t = time

First, change 3.5% into a decimal:

3.5% -> $\frac{3.5}{100}$ -> 0.035

Now, lets plug the values into the equation:

$P=\frac{910}{(1+(0.035)(4))}$

$P=798.25$

Eloise originally invested $798.25