Terry invested money in an account that paid 4 percent simple interest for one year. After the year ,terry had \$156 in his account . he did

Question

Terry invested money in an account that paid 4 percent simple interest for one year. After the year ,terry had \$156 in his account . he did not make any withdrawal or deposits within that year . what was the beginnings amount of money in terry account

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2 weeks 2022-01-12T20:56:58+00:00 1 Answer 0 views 0

The initial deposit that Terry made was \$ 150

Step-by-step explanation:

1. Let’s review the information given to us to answer the question correctly:

Future Value of the account = \$ 156

Interest rate = 4% simple interest = 0.04

Terry did not make any withdrawal or deposits

2. What was the beginnings amount of money in Terry’s account?

Let’s recall the simple interest formula for answer this question:

FV = P * (1 + rt)

Replacing with the values we have:

156 = P * (1 + 0.04)

156 = 1.04p

P = 156/1.04

P = 150

The initial deposit that Terry made was \$ 150