Question

(7.RP.3) When invested at an annual interest rate of 6% an account earned $180.00 of simple interest in one year. How much money was originally invested in account? (1 pt) * a) $10.80 b) $108 c) $648 d) $30 e) $300 f) $3,000

Answer 1

Answer: f) $3,000

Explanation:

Given: Simple interest amount S.I.= $180.00

The rate of interest annually= 6%

In decimal , the rate of interest annually r = 0.06

Time period t = 1 year

Let 'P' be the principal amount invested in account.

The formula to calculate simple interest is as :-

`\text{Simple interest }=Prt`

`\\\Rightarrow180=P(0.06)*1\\\\\Rightarrow\ P=(180)/(0.06)\\\\\Rightarrow\ P=\$3000`

Hence, the principal amount invested in account = $3000