SOLUTION: After five years of earning interest at an annual rate of 4%, an investment has earned $1,200 in interest. Determine the amount of the initial investment
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Question 1047802: After five years of earning interest at an annual rate of 4%, an investment has earned $1,200 in interest. Determine the amount of the initial investment Answer by stanbon(75887) (Show Source):
You can put this solution on YOUR website! After five years of earning interest at an annual rate of 4%, an investment has earned $1,200 in interest. Determine the amount of the initial investment
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I = P*r*t
1200 = P*0.04*5
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P = 1200/(0.2)
P = 12000/2 = $6000
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Cheers,
Stan H.
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