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