SOLUTION: After five years of earning interest at an annual rate of 3%, an investment has earned $950 in interest. To the nearest whole dollar, determine the amount of the initial investment
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Question 1127459: After five years of earning interest at an annual rate of 3%, an investment has earned $950 in interest. To the nearest whole dollar, determine the amount of the initial investment. Show all work for full credit.
You can put this solution on YOUR website! you say "annual rate" and not "compounded annually" so I will assume you mean simple interest. If you need compound interest send me an email.
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I = Interest
P = Principal (the initial investment)
r = rate of interest
t = time
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I = Prt
900 = P(0.03 * 5)
900 = P(0.15)
P(0.15) = 900
P = 900/0.15 = 6,000 was the initial investment
