SOLUTION: Katerina Labov inherited some money and invested it at 6% simple interest. At the end of the year, the total amount of her original principal and the interest was $12,720. How muc

Algebra ->  Customizable Word Problem Solvers  -> Finance -> SOLUTION: Katerina Labov inherited some money and invested it at 6% simple interest. At the end of the year, the total amount of her original principal and the interest was $12,720. How muc      Log On

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Question 909253: Katerina Labov inherited some money and invested it at 6% simple interest. At the end of the year, the total amount of her original principal and the interest was $12,720. How much did she originally invest?
Answer by josmiceli(19441) About Me  (Show Source):
You can put this solution on YOUR website!
Let +P+ = the original principal
+P+%2B+.06%2AP+=+12720+
+1.06P+=+12720+
+P+=+12720+%2F+1.06+
+P+=+12000+
She invested $12,000
check:
The interest must have been
+12720+-+12000+=+720+
+.06%2A12000+=+720+
OK