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

Question

Mathematics

Monserrat Rivas

20 October, 03:18

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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Answers (1)

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Wendy Wilkinson · Answer 1

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