Deshaun invested in a savings bond for 4 years and was paid simple interest at an annual rate of 2%. The total interest that he earned was $160. How much did he invest?

Simple interest is a quick and simple formula for figuring out how much interest will be charged on a loan. The daily interest rate, the principle, and the number of days between payments are multiplied to calculate simple interest.

Given:

Simple Interest (S.I.) = $160

Rate of Interest (R) = 2%

Time Period (T) = 4 Years

Let the Principal Amount be $P

We know,

[tex]S.I. =\frac{P*R*T}{100}[/tex]

Putting the given values in the formula, we get:

[tex]S.I. =\frac{P*R*T}{100}\\S.I. =\frac{P*2*4}{100} =\frac{P*8}{100}\\ 160 =\frac{P*8}{100} \\P = \frac{160*100}{8} =\frac{16000}{8} = 2000[/tex]

Hence, He Invested $2000

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semsee45 semsee45 · Answer 2 · 2022-10-29T08:47:10-04:00

Answer:

$2,000

Step-by-step explanation:

Simple Interest Formula

[tex]\large\boxed{\sf I = Prt}[/tex]

where:

I = Total interest accrued.
P = Principal.
r = Interest rate (in decimal form).
t = Time (in years).

Given values:

I = $160
r = 2% = 0.02
t = 4 years

Substitute the given values into the formula and solve for P:

[tex]\implies \sf 160=P \cdot 4 \cdot 0.02[/tex]

[tex]\implies \sf 160=0.08P[/tex]

[tex]\implies \sf P=\dfrac{160}{0.08}[/tex]

[tex]\implies \sf P=2000[/tex]

Therefore, the amount Deshaun invested was $2,000.