After 88 years, Amanda's account earned $1500$1500 in interest. If the interest rate (in decimal form) is 0.080.08, how much did Amanda initially invest?Amanda's Bank StatementInterest Earned $1500$1500Rate 0.080.08Time 88 YearsPrincipal Invested ?Step 1 of 3: Choose the correct formula:
Question
After 88 years, Amanda's account earned 1500 in interest. If the interest rate (in decimal form) is 0.080.08, how much did Amanda initially invest?Amanda's Bank StatementInterest Earned 1500Rate 0.080.08Time 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:
$1500 = P * 0.08 * 88
Step 3 of 3: Solve for P:
P = $1500 / (0.08 * 88)
Calculate the value of P to find out how much Amanda initially invested.
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