Translate into an equation and show steps to solve.

Money is invested in a "guaranteed fund" at 12% simple interest. After one year, there is $840 in the account. How much was originally invested?

Question

Translate into an equation and show steps to solve.

Money is invested in a "guaranteed fund" at 12% simple interest. After one year, there is $840 in the account. How much was originally invested?

kropot72 · Answer

Let the amount originally invested = A
840 = A + (0.12 * A)
Can you solve this equation to find A ?

anonymous · Answer

is 3500 the correct answer?

kropot72 · Answer

A * 1.12 = 840
$$A=\frac{840}{1.12}=?$$

anonymous · Answer

james, if originally u saved 3500 and after a year u got 840, that is not make sense

anonymous · Answer

o0h thats make sense if u went to ATM much :D

kropot72 · Answer

@JamesR4494 Can you calculate$$\frac{840}{1.12}$$ to find A ?

anonymous · Answer

750, How'd you get 1.12 though?

anonymous · Answer

(1+r)^-t

kropot72 · Answer

1.12 is obtained from the equation 840 = A + (0.12 * A) = A(1 + 0.12) = A * 1.12

anonymous · Answer

I still don't understand :/

anonymous · Answer

do u know the formula?

anonymous · Answer

Nope.

anonymous · Answer

the original money + interest = the money in the end, do u understand?

anonymous · Answer

So we have A + 0.12 = $840

kropot72 · Answer

A + 0.12A = 840

anonymous · Answer

yes, but the formula for interest is (1+ 12%)^-1 year