Question

After earning interest, the balance of an account is $420. The new balance is 7/6 of the original balance. How much interest did it earn? Answers 1. By solving the word problem given, the interest that was earned is calculated as:$60.

### How to Solve Word Problem?

Given the word problem above, to find how much interest earned, we solve as shown below:
New balance after earning interest = $420 Let the original balance be represented as x Therefore, we would create the following equation to find the value of x: 7/6 of x = 420 7/6 × x = 420 7/6x = 420 Solve for x by multiplying both sides by 6/7 7/6x × 6/7 = 420 × 6/7 x = (420 × 6)/7 x = 360 The original balance is$320
Interest = New balance – original balance
Interest = $420 –$320
Interest = $60 Thus, solving the word problem given, the interest that was earned is calculated as:$60.