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After 88 years, Susan's account earned $900$⁢900 in interest. If the interest rate (in decimal form) is 0.10.1, how much did Susan initially invest?Susan's Bank StatementInterest Earned $900$⁢900Rate 0.10.1Time 88 YearsPrincipal Invested ?Step 3 of 3: Finally, solve the problem by substituting in the appropriate values. (Round your answer to 2 decimal places if necessary.)

Question

After 88 years, Susan's account earned 900900⁢900 in interest. If the interest rate (in decimal form) is 0.10.1, how much did Susan initially invest?Susan's Bank StatementInterest Earned 900900⁢900Rate 0.10.1Time 88 YearsPrincipal Invested ?Step 3 of 3: Finally, solve the problem by substituting in the appropriate values. (Round your answer to 2 decimal places if necessary.)

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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.

In this case, we know the interest (I) is $900, the rate (R) is 0.1 (or 10%), and the time (T) is 88 years. We want to find the principal amount (P).

Rearranging the formula to solve for P gives us P = I / (RT).

Substituting the given values into this formula gives us P = 900 / (0.1 * 88).

Calculating this gives us P = $102.27.

So, Susan initially invested $102.27.

This problem has been solved

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