Problema Solution
Edwardo invested money in an account earning 45 simple interest. At the end of 5 years, he had a total of $14,400 How much money did he originally invest?
Answer provided by our tutors
Let intial investment = x
Assuming interest rate = 4.5%
Time = 5 years
=> after 5 years simple interest earned = (4.5 * x*5)/100 = 0.225x
Total amount = x + 0.225x = 1.225x
=> 1.225x = 14400 => x=14400/1.225 = 11755.10
Hence, theamount he had = x = $ 11755.10