Problema Solution

After

10

years, Hamid's account earned

$600

in interest. If the interest rate (in decimal form) is

0.12

, how much did Hamid initially invest?

Answer provided by our tutors

let


P = the amount initially invested


r = 0.12 the interest rate


t = 10 years


I = $600 the interest earned


I = P*r*t


P*r*t = I


P*0.12*10 = 600


by solving we find:


P = $500


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Hamid initially invested $500.