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by romitvsingh » Fri Oct 14, 2011 7:41 am
Ann invested a certain sum of money in a bank that paid simple interest. The amount grew to $240 at the end of 2 years. She waited for another 3 years and got a final amount of $300. What was the principal amount that she invested at the beginning?
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by VivianKerr » Fri Oct 14, 2011 7:51 am
After 2 years it was $240, and after 3 more years it was $300, so we know in 3 years it grew by $60, so each year it grew by $20.

So in the first two years it grew $20 per year, a total of $40.

$240 - $40 = $200.
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