Money is invested in a savings account at 3.4% simple interest. After 1 year, there is $1695.76 in the account. How much was originally invested?
To find out how much was originally invested in the savings account, we can use the formula for simple interest:
Simple Interest = Principal * Rate * Time
Let's break down the given information:
Interest: $1695.76
Rate: 3.4% per year
Time: 1 year
We can rewrite the formula to find the principal amount:
Principal = Interest / (Rate * Time)
Substituting the values we have:
Principal = $1695.76 / (3.4% * 1 year)
First, let's convert 3.4% to decimal form by dividing it by 100:
Principal = $1695.76 / (0.034 * 1 year)
Simplifying further:
Principal = $1695.76 / 0.034
Finally, we can calculate the principal amount by dividing $1695.76 by 0.034:
Principal = $49,876.47
Therefore, the originally invested amount in the savings account was $49,876.47.
To find out how much was originally invested, we can use the formula for simple interest:
I = P * R * T
Where:
I = Interest earned
P = Principal amount (amount originally invested)
R = Interest rate
T = Time in years
Given:
Interest earned, I = $1695.76
Interest rate, R = 3.4% = 0.034 (expressed as a decimal)
Time, T = 1 year
Substituting the given values into the formula, we have:
1695.76 = P * 0.034 * 1
To solve for P (the principal amount), divide both sides of the equation by (0.034 * 1):
P = 1695.76 / (0.034 * 1)
P ≈ $50,162.35
Therefore, the originally invested amount was approximately $50,162.35.