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3. Yuval earned an interest of of $120 with his bank account interest rate of 5%. What was the original amount in his bank account?

Question

  1. Yuval earned an interest of of $120 with his bank account interest rate of 5%. What was the original amount in his bank account?
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Solution

To find the original amount in Yuval's bank account, we need to use the formula for calculating interest, which is:

Interest = Principal x Rate

In this case, we know the interest ($120) and the rate (5% or 0.05 when expressed as a decimal), and we want to find the principal (the original amount in the bank account).

So, we can rearrange the formula to solve for the principal:

Principal = Interest / Rate

Substituting the given values:

Principal = $120 / 0.05

Principal = $2400

So, the original amount in Yuval's bank account was $2400.

This problem has been solved

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