How much must harry's hardware deposit at 8.5% interest for 120 days in order to earn 800 interest? round to the nearest dollar?

Question

asked Jun 22, 2019 129k views

1 Answer

JulCh · Answer 1 · 2019-06-28T13:19:16+0000

Harry must deposit $28,627 in order to earn $800 interest in 120 days.

We follow these steps to arrive at the answer.

We have :

Interest Rate = 8.5% per annum

No. of days = 120 days

Interest on Deposit = $800.

Let the principal amount invested be 'x'. The formula we use in this case is as follows:

$Interest earned = Principal * Interest rate * \frac{No. of days of deposit},{No. of days per year}$

Substituting the values in the formula we have,

800 = x * 0.085 * ((120)/(365))

800 = 0.027945205x