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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