Question

Last year Hank cashed out his investment account that earned 4.5% simple interest after 10 years
of investing. He ended up with $350 in interest on the account. How much was his initial investment?
Show your work
I=
P=
R=
T=

Answer 1

Answer:

Initial investment= $777.78

Step-by-step explanation:

Giving the following information:

Last year Hank cashed out his investment account that earned 4.5% simple interest after 10 years of investing. He ended up with $350 in interest on the account.

To calculate the principal (initial investment), we need to use the following formula:

I= P*r*t

I= $350

r= 0.045

t= 10

P= ?

350= P*0.045*10

350/0.45 = P

$777.78= P