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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

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    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.
     
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