QuestionAugust 23, 2025

E1. BANKING After earning interest,the 28 balance of an account is 420 .The new balance is (7)/(6) of the original balance. How much interest was earned?

E1. BANKING After earning interest,the 28 balance of an account is 420 .The new balance is (7)/(6) of the original balance. How much interest was earned?
E1. BANKING After earning interest,the
28 balance of an account is 420 .The new
balance is (7)/(6) of the original balance.
How much interest was earned?

Solution
4.3(198 votes)

Answer

\60 Explanation 1. Define the relationship between balances Let the original balance be x. The new balance is given by \frac{7}{6}x = 420. 2. Solve for the original balance Rearrange to find x: x = \frac{420 \times 6}{7}. 3. Calculate the original balance Compute x: x = 360. 4. Calculate the interest earned Interest earned is the difference between the new and original balance: 420 - 360.

Explanation

1. Define the relationship between balances<br /> Let the original balance be $x$. The new balance is given by $\frac{7}{6}x = 420$.<br /><br />2. Solve for the original balance<br /> Rearrange to find $x$: $x = \frac{420 \times 6}{7}$.<br /><br />3. Calculate the original balance<br /> Compute $x$: $x = 360$.<br /><br />4. Calculate the interest earned<br /> Interest earned is the difference between the new and original balance: $420 - 360$.
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