Question

Jamie opened a bank account with some initial amount of money. The account earns simple interest at a rate of 15% per year for 2 years. At the end of that time, the account has a value of $4,000. What was the original amount of money that Jamie put in the account?

Answer 1

ANSWER:

The initial amount deposited by Jamie is $3076.92 approximately.

SOLUTION:

Given, Jamie opened a bank account with some initial amount of money.  

The account earns simple interest at a rate of 15% per year for 2 years.  

At the end of that time, the account has a value of $4,000.  

r = 15%, t = 2 years, total bank balance = $4000.

We need to find the principal amount.

We know that,

$Simple interest =\left(\frac{p \times r \times t}{100}\right)$

By substituting the values we get,

$=\left(\frac{p \times 15 \times 2}{100}\right)$

$=\frac{30 p}{100}$

$\mathrm{S.} 1=\frac{3 p}{10}$

Now, total bank balance = $4000

Initial amount + simple interest = 4000

P + S.I = 4000

$\mathrm{P}+\frac{3 p}{10}=4000$

10p + 3p = 40000

13p = 40000

P = 3076.9230

Hence, the initial amount deposited by Jamie is $3076.92 approximately.

Answer 2

Answer:

3076 round up $3077

Step-by-step explanation: