Problema Solution
Each month, the amount of simple interest earned in an account varies directly with the starting amount in the account. Suppose that a starting amount of $8700 earns $607 interest in a month. What is the starting amount that earns $308 interest in a month?
Answer provided by our tutors
The principal * interest rate* time = Interest
So
We assume the starting amount is x
So
8700/607 = x/308
So
x = 4144.5
So the starting amount is $4144.5
Hi, the answer should be $4414.5 instead of $4144.5, I miswrote it, sorry