Question 27919
Simple interest means that it wasn't compounded. The total amount of money in the bank after a year then is simply what she started with, plus her 6% interest. If we call her original investment x, then the amount of interest after a year is 6% of x or 0.06x. When we add them, we know the total is $6996, so we can write:
{{{x+0.06x=6996}}}Combining x's:
{{{1.06x=6996}}}Divide both sides by 1.06:
{{{x=6600}}}
So her original investment was $6,600 and after a year 6% ($396) was added to give her a total of $6,996.