3. Yuval earned an interest of of $120 with his bank account interest rate of 5%. What was the original amount in his bank account?
Question
Question
Yuval earned an interest of $120 with his bank account interest rate of 5%. What was the original amount in his bank account?
Solution
To find the original amount in Yuval's bank account, we need to use the formula for calculating interest, which is:
Interest = Principal x Rate
In this case, we know the interest ($120) and the rate (5% or 0.05 when expressed as a decimal), and we want to find the principal (the original amount in the bank account).
So, we can rearrange the formula to solve for the principal:
Principal = Interest / Rate
Substituting the given values:
Principal = $120 / 0.05
Principal = $2400
So, the original amount in Yuval's bank account was $2400.
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