After 88 years, Susan's account earned $900$900 in interest. If the interest rate (in decimal form) is 0.10.1, how much did Susan initially invest?Susan's Bank StatementInterest Earned $900$900Rate 0.10.1Time 88 YearsPrincipal Invested ?Step 1 of 3: Choose the correct formula:
Question
After 88 years, Susan's account earned 900 in interest. If the interest rate (in decimal form) is 0.10.1, how much did Susan initially invest?Susan's Bank StatementInterest Earned 900Rate 0.10.1Time 88 YearsPrincipal Invested ?Step 1 of 3: Choose the correct formula:
Solution
The formula we need to use is the simple interest formula, which is:
I = PRT
where: I = Interest earned P = Principal amount (initial investment) R = Rate of interest T = Time
Step 2 of 3: Substitute the given values into the formula:
$900 = P * 0.1 * 88
Step 3 of 3: Solve for P:
P = $900 / (0.1 * 88)
Calculate the value of P to find out how much Susan initially invested.
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