Question

what was the original principal for an 8% simple interest bank account that holds $4340 after 3 years?

Answer 1

The original deposited amount in the bank is $3500.

Explanation:

Here. Let us assume the principal amount deposited in bank = $P

The rate of interest = 8%

Total Amount in the bank after time period = $4340

Time Period = 3 yrs

Now, SIMPLE INTEREST
`= (P * R * T)/(100)`

⇒ SI =
`SI = (P * 8 * 3)/(100) = 0.24P`

or Interest = 0.24 P

Now, AMOUNT = PRINCIPAL + INTEREST

⇒$4340 = P + 0.24 P

or, 4340 = 1.24 P

⇒ P = 1340 / 1.24 = 3500

Hence, the deposited amount in the bank for the duration of 3 years and interest rate 8% is $3500