After 5 years, marcels account earned $ 600 in interest. If the interest rate is 0.03, how much did marcel initially invest?
I = Prt
600 = P * 0.03 * 5
600 = 0.15P
600 / 0.15 = P
After 20
years, Marcel's account earned $1200
in interest. If the interest rate (in decimal form) is 0.1
, how much did Marcel initially invest?
To determine how much Marcel initially invested, we can use the formula for simple interest:
Interest = Principal × Interest Rate × Time
Given that the interest earned after 5 years is $600 and the interest rate is 0.03, we can plug these values into the formula to solve for the principal:
$600 = Principal × 0.03 × 5
Next, we can simplify the equation:
$600 = Principal × 0.15
To isolate the principal, we divide both sides of the equation by 0.15:
Principal = $600 ÷ 0.15
Principal = $4,000
Therefore, Marcel initially invested $4,000.
To find out how much Marcel initially invested, we can use the formula for simple interest:
Interest = Principal x Rate x Time
In this case, we know the interest earned ($600), the interest rate (0.03), and the time (5 years). We can rearrange the formula to solve for the principal:
Principal = Interest / (Rate x Time)
Substituting the given values, we can calculate Marcel's initial investment:
Principal = $600 / (0.03 x 5)
Principal = $600 / 0.15
Principal = $4000
Therefore, Marcel initially invested $4000.