when invested at an annual interest rate of 4.7% an account earned 1290.33 of simple interest in 3 years how much money was originally invensted
Well, well, well, it looks like we've got some money-making magic trick going on here! Let's take a peek behind the curtain and crunch some numbers.
If an account earned $1290.33 in simple interest over 3 years at an annual interest rate of 4.7%, we can find out how much money was originally invested.
To do this, we can use the formula: Simple Interest = Principal * Rate * Time
Let's plug in the given values:
$1290.33 = Principal * 0.047 * 3
Now let's perform a little trick called algebra:
$1290.33 = Principal * 0.141
Now, let's make the Principal appear:
Principal = $1290.33 / 0.141
Drumroll, please...
After some calculations, it looks like the original amount invested was approximately $9159.57! Ta-da!
To find the original amount invested, we can use the formula for simple interest:
I = P * r * t
Where:
I = interest earned
P = principal or original amount invested
r = interest rate
t = time in years
In this case, the interest earned (I) is given as $1290.33, the interest rate (r) is 4.7% (or 0.047 as a decimal), and the time (t) is 3 years. We need to solve for the principal (P).
1290.33 = P * 0.047 * 3
To solve for P, divide both sides of the equation by (0.047 * 3):
P = 1290.33 / (0.047 * 3)
P ≈ 2923.404
So, the original amount invested was approximately $2923.40.
To determine the original amount of money invested, we can use the formula for simple interest:
Simple Interest = Principal * Interest Rate * Time
Given that the interest rate is 4.7% (expressed as a decimal, 0.047), the simple interest earned is $1290.33, and the time period is 3 years, we can rewrite the formula as:
1290.33 = Principal * 0.047 * 3
Now let's solve for Principal by rearranging the formula:
Principal = 1290.33 / (0.047 * 3)
Calculating this equation will provide us with the original amount of money invested.
I = PRT
1290 33 = P * 0.047 * 3
Solve for P.