Carlos invested some money 7 years ago in a savings account that earned a simple interest rate of 3.125%. He now has 40,218.75. How much money did he start with?

Solution

Carlos invested some money 7 years ago in a savings account that earned a simple interest rate of 3.125%. He now has 40, 218.75. How much money did he start with?

Solution

Amount : 49016.6

Solution steps

Translate the problem into an equation:

A = 40218.75 (1 + 0.03125 \cdot 7)

40218.75 (1 + 0.03125 \cdot 7) = 49016.60156 \dots

Round to the nearest hundredth:

49016.6

Amount : 49016.6

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