Answer:
Hamid initially invested $1,125.
Step-by-step explanation:
This is a simple interest problem.
The simple interest formula is given by:
[tex]E = P*I*t[/tex]
In which E is the amount of interest earned, P is the principal(the initial amount of money), I is the interest rate(yearly, as a decimal) and t is the time.
After 10 years, Hamid's account earned $900 in interest.
This means that [tex]t = 10, E = 900[/tex]
Interest rate of 0.08:
This means that [tex]I = 0.08[/tex]
How much did Hamid initially invest?
We have to find P. So
[tex]E = P*I*t[/tex]
[tex]900 = P*0.08*10[/tex]
[tex]P = \frac{900}{0.8}[/tex]
[tex]P = 1125[/tex]
Hamid initially invested $1,125.
