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Aviva deposited some amount of money at a 4% annual interest rate into her bank account. The money was left in the account for 18 months, and she did not make any more deposits.

If Aviva's money earned $240 interest after 18 months, how much money did she deposit into the account?

Sagot :

Lanuelidn

The amount of money that was deposited by Aviva into her bank account is $4,000.

Given the following data:

  • Interest rate = 4% = 0.04.
  • Simple interest = $240.
  • Time = 18 months.

Conversion:

12 months = 1 year.

18 months = 1.5 year.

To determine the amount of money that was deposited by Aviva into her bank account:

How to calculate simple interest.

Mathematically, simple interest is given by this formula:

[tex]I=PRT[/tex]

Where:

  • S.I is the simple interest.
  • P is the principal or starting amount.
  • R is the interest rate.
  • T is the time measured in years.

Substituting the given parameters into the formula, we have;

[tex]240=P \times 0.04 \times 1.5\\\\240=0.06P\\\\P=\frac{240}{0.06}[/tex]

P = $4,000.

Read more on simple interest here: brainly.com/question/24341207

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