How much must be placed in a five month term deposit earning 4.4 simple interest in order to earn $480 interest

Josalynn

Josalynn

Answered question

2020-11-10

How much must be placed in a five month term deposit earning 4.4 simple interest in order to earn $480 interest

Answer & Explanation

Fatema Sutton

Fatema Sutton

Skilled2020-11-11Added 88 answers

Formula for Simple Interest is as follows - Simple Interest = PXRXT100 P = Principal Sum , R = Rate of Interest = 4.4 (in this case ) & T = Term during which the Principal Sum stays invested = 5 months ( in this case ) = 512 years So, the equation becomes - 480=PX4.4X512X100
So , P=(480×12×100)/(4.4×5)
So. P (Principal Sum ) = $ 26181.18

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