After 88 years, Amanda's account earned $1500$1500 in interest. If the interest rate (in decimal form) is 0.080.08, how much did Amanda initially invest?Amanda's Bank StatementInterest Earned $1500$1500Rate 0.080.08Time 88 YearsPrincipal Invested ?Step 2 of 3: Without substitution, solve the formula for the unknown variable in terms of the known variables.
Question
After 88 years, Amanda's account earned 1500 in interest. If the interest rate (in decimal form) is 0.080.08, how much did Amanda initially invest?Amanda's Bank StatementInterest Earned 1500Rate 0.080.08Time 88 YearsPrincipal Invested ?Step 2 of 3: Without substitution, solve the formula for the unknown variable in terms of the known variables.
Solution
The formula for calculating interest is I = PRT, where I is the interest, P is the principal amount (initial investment), R is the rate of interest, and T is the time.
We need to find P, so we rearrange the formula to solve for P:
P = I / (RT)
Now we can substitute the given values into the formula.
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