Question

Money is invested in a savings account at 5% simple interest. After one year, there is $924 in the account. How much was originally invested?

Answer 1

880

Step-by-step explanation:

Given:

Rate of interest (r) = 5%

Time(t) = 1 yr

Amount(A) = $ 924

To Find:

How much was originally invested?

i.e Principle(P)

Solution:

We Can solve this just by using formula

$\sf \: P = A \: \dfrac{100}{(100 + rt)}$

Now, Putting the Values,

$= 924 \times \dfrac{100}{100 + 1 \times 5} \\ \\ = 924\times \frac{100}{105} \\ \\ = 880$

Therefore, The original investement is $880 .

Answer 2

Question

• Money is invested in a savings account at 5% simple interest. After one year, there is $924 in the account. How much was originally invested?

Answer

Given

• Rate of Interest, I = 5 %

• Time, T = 1 year

• Amount = $ 924

To Find

• Principal = ?

Formula Used

$\boxed{\bf \: {\star \: \: Simple \: interest \: = \: \dfrac{P \times R \times T}{100}}}$

and

$\boxed{\bf{\star \: \: Amount \: = \: Interest \: + \: Principal}}$

where,

• P denotes Principal

• R denotes Rate

• T denotes Time

Solution

• Let the money invested be $P.

It is given that

• Rate, R = 5%

• Time, T = 1 year.

So,

Simple interest on $ P for 1 year at 5 % per annum is given by

$\tt \: Simple \: interest \: = \: \dfrac{P \times R \times T}{100}$

$\rm :\implies\:Simple \: interest \: = \: \dfrac{P \times 5 \times 1}{100}$

$\rm :\implies\:Simple \: interest \: = \: \dfrac{P}{20}$

Now,

It is given that

• Amount after 1 year = $ 924

So,

$\bf \: Amount \: = \: Interest \: + \: Principal$

$\rm :\implies\:924 = P + \dfrac{P}{10}$

$\rm :\implies\:924 = \dfrac{10P + P}{10}$

$\rm :\implies\:924 = \dfrac{11P}{10}$

$\rm :\implies\:P = 924 \times \dfrac{10}{11}$

$\rm :\implies\:P \: = \ \: 840$