We use cookies to personalise content and advertisements and to analyse access to our website. Furthermore, our partners for online advertising receive pseudonymised information about your use of our website. cookie policy and privacy policy.
 
+0  
 
0
75
2
avatar

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

 Jan 29, 2019

Best Answer 

 #2
avatar
+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 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."

 Jan 29, 2019
edited by Guest  Jan 29, 2019
 #1
avatar
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!

 Jan 29, 2019
 #2
avatar
+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 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."

Guest Jan 29, 2019
edited by Guest  Jan 29, 2019

5 Online Users