SOLUTION: How much should you invest at 2.1% simple interest in order to earn $55 interest in 12 months?

Question 1057113: How much should you invest at 2.1% simple interest in order to earn $55 interest in 12 months?
Answer by solve_for_x(190) (Show Source): You can put this solution on YOUR website!
For simple interest, the interest earned is given by:

Interest = Principal * Rate * Time

with the Rate expressed as a decimal, and the Time in years.

To earn interest of $55 at 2.1% interest for 1 year:

55 = P * 0.021 * 1

P = 55 / 0.021

P = $2,619.05 (rounded to the nearest cent)

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