Samson opened a bank account with 1.25% simple interest. The total amount of interest Samson will earn after 20 years is $812.50. How much did Samson deposit when he opened the accoun

Answer :

$650

Step-by-step explanation:

       The principal amount recieves a simple interest every year. The simple interest rate is given as [tex]1.25\%[/tex].

       It is given that the total amount after 20  years is $812.50

       [tex]Total=Principal+Interest\textrm{ = }P+P\times i\times T[/tex]

Here [tex]P[/tex] is the principal amount, [tex]i[/tex] is the interest rate, [tex]T[/tex] is the time period.

       [tex]812.50=P+P\times (1.25\times \frac{1}{100})\times 20yr=P\times 1.25\\P=650\$[/tex]

∴ Samson had $650 when he opened the account.

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