Posted by Dee on Saturday, May 7, 2011 at 4:05pm.
A bank deposit paying simple interest at the rate of 8% per year grew to a sum of $1200 in 10 months. Find the principal. (Round your answer to the nearest cent.)

Finite Math  drwls, Saturday, May 7, 2011 at 4:23pm
Simple interest is paid when the money is paid back (or in this case, withdrawn). That is not how banks compute interest either owed or paid, but since they want you to do it that way, here is what you do:
If the initial principal is X,
X*(1 + 0.08*(10/12)) = 1200.00
X*(1.06666667) = 1200
X = 1125.00
Answer This Question
Related Questions
 Alg 2  Suppose you deposit a principal amount of p dollars in a bank account ...
 Alg2  Help....Help... Suppose you deposit a principal amount of p dollars in a ...
 Business Math  Compute the simple interest. Assume 1 month to be of a year. ...
 algebra  The formula for calculating the amount of money returned for an ...
 Simple interest  Find the interest. Round to the nearest cent in necessary. ...
 Maths  Solve the problem. Assume that simple interest is being calculated. ...
 math  Find the accumulated amount A if the principal P = $3,000 is invested at ...
 Math  Find the simple interest. Round your answer to the nearest cent. ...
 College Algebra~ Check answer please  Can someone check my answers please. The ...
 Math  Asher cashed in a oneyear term deposit after only five months had ...
More Related Questions