after 8 years, sheila’s Account earned $900 in interest. If the interest rate is 0.08 how much did Sheila initially invest

Guest Jan 29, 2019

#2**+1 **

**It all depends whether the $900 interest was "simple interest" or " compounded interest" 1 - Simple interest: Let the amount she invested 8 years =A**

A = $1,406.25 - what she invested 8 years ago at "simple interest"

**2- Compounded interest FV =PV + interest A +900 =A x {1.08}^8, solve for A A =1,057.67 - This is what she invested if $900 was "compounded."**

Guest Jan 29, 2019

edited by
Guest
Jan 29, 2019

#1**0 **

If y=C(1+r)^t, then just plug in the numbers.

Y=C(The original amount)*(1+r(The rate of intrest))^t(The amount of time)

y=900(1.08)^8

y=$1665.84

Hope this helped!

Guest Jan 29, 2019

#2**+1 **

Best Answer

**It all depends whether the $900 interest was "simple interest" or " compounded interest" 1 - Simple interest: Let the amount she invested 8 years =A**

A = $1,406.25 - what she invested 8 years ago at "simple interest"

**2- Compounded interest FV =PV + interest A +900 =A x {1.08}^8, solve for A A =1,057.67 - This is what she invested if $900 was "compounded."**

Guest Jan 29, 2019

edited by
Guest
Jan 29, 2019