1. Limited time only! Sign up for a free 30min personal tutor trial with Chegg Tutors
    Dismiss Notice
Dismiss Notice
Join Physics Forums Today!
The friendliest, high quality science and math community on the planet! Everyone who loves science is here!

Homework Help: Simple Interest help -- investment in his savings account matured to $4,106.32

  1. Oct 18, 2017 #1
    1. The problem statement, all variables and given/known data
    Michael's investment in his savings account matured to $4,106.32 at the end of 165 days. If the account was earning simple interest at a rate of 4.80% p.a., answer the following.
    a. What was Michael's initial investment?

    Round to the nearest cent
    b. How much interest did Michael earn?

    Round to the nearest cent

    2. Relevant equations

    p=s(1+rt) ?
    I=prt
    3. The attempt at a solution
    s=4,106.32
    t=165/365
    r=0.048

    s=4,106.32(1+0.048*165/365)
     
  2. jcsd
  3. Oct 18, 2017 #2
    It should be divided, not multiplied.
     
  4. Oct 19, 2017 #3

    vela

    User Avatar
    Staff Emeritus
    Science Advisor
    Homework Helper
    Education Advisor

    You've mixed up ##p## and ##s##. ##p## is the final value of the investment, and ##s## is the amount initially invested. Make sure you understand what each variable in a formula represents instead of plugging numbers in willy-nilly.
     
Share this great discussion with others via Reddit, Google+, Twitter, or Facebook

Have something to add?
Draft saved Draft deleted