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 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 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.)
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.
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