Question

If interest paid on an investment is $25.21 for 50 days at an interest rate of 8.25%, what was the original amount invested if the exact interest method is used? (Round to the nearest cent).

Answer 1

Interest Paid= $25.21
Time= 50 days
Rate= 8.25 %
In exact Interest method 1 year= 365 days so time= 50/365
so we need to find the original amount invested , Let it be P
\[Interest = \frac{P \times R \times T}{100}\]
\[25.21=\frac{P\times 8.25 \times \frac{50}{365}}{100}\]
So
\[P= \frac{25.21 \times 100 \times 365}{8.25 \times 50}\]
Now you can find P, can't you?

Answer 2

Hi @acooper8525 Welcome to Open Study:D

Answer 3

hi and thanks

Answer 4

Did you get it?

Answer 5

working on it now

Answer 6

Great:)

Answer 7

P=2,230.70?

Answer 8

?