After earning interest the balance of an account is $420. The new balance is 7/6 of the orginial balance. How much interest was earned?
Let's start by setting up an equation to solve this problem. Let's say the original balance of the account is represented by "x".
According to the problem, the new balance is 7/6 of the original balance, which can be written as:
7/6 * x = $420
To find the value of x, we can multiply both sides of the equation by 6/7:
(7/6 * x) * (6/7) = $420 * (6/7)
Simplifying the equation, we get:
x = $360
Therefore, the original balance of the account was $360.
Now, to find the amount of interest earned, we subtract the original balance from the new balance:
$420 - $360 = $60
Therefore, $60 was earned as interest.
To find out how much interest was earned, we first need to find the original balance of the account.
Let's assume the original balance of the account is 'x'.
According to the information given, the new balance is 7/6 (or 7/6 * x) of the original balance.
So, the equation becomes:
7/6 * x = $420
To solve for x, we can multiply both sides of the equation by 6/7:
(7/6 * x) * (6/7) = $420 * (6/7)
x = $360
Now that we know the original balance is $360, we can find the amount of interest earned by subtracting the original balance from the new balance.
Interest earned = New balance - Original balance
= $420 - $360
= $60
Therefore, the amount of interest earned is $60.
420 -360 = 60
Answer = 60 dollars / $60
(7/6)x = 420
(6/7)(7/6)x = (6/7)(420)
x = 360