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
- Yuval earned an interest of of $120 with his bank account interest rate of 5%. What was the original amount in his bank account?
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.
Similar Questions
A man took a loan from a bank at the rate of 12% per annum at simple interest. After 3 years he had to pay 5,400 as interest. The principal amount borrowed by him was?
Select the correct answerThe rate of simple interest per annum of bank being decreased from 5% to 3.5%, the annual income of a person from interest was less by Rs. 105. The sum deposited at the bank was?
Nithin borrowed some money at the rate of 6% p.a. for the first three years, 9% p.a. for the next five years and 13% p.a. for the period beyond eight years. If the total interest paid by him at the end of eleven years is 8,160, the money borrowed by him was?
Mr. Ho deposited $120 000 in a bank and after x months, he received a total amount of $132 000. If the bank offered him a simple interest rate of 4% p.a., find the value of x.
Peter lent some amount of money at 5% simple interest and anequal amount of money at 7% simple interest, each for 3 years. If totalinterest earned on both the sum was Rs 360, what amount was lent in each case?Rs 2000Rs 2500Rs 3600Rs 1000
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.