Question

How much should you invest at 3% simple interest in order to earn $65 interest in 14 months?

Answer 1

You should invest approximately $1857

Explanation:

The simple interest is calculated using the formula;

`I=(P* T* R)/(100)`

Where P is the principal - the amount to be invested.

We must convert the 14 months to years.

`T=(14)/(12)=(7)/(6)` is the time in years.

`R\%=3\%` is the rate percent.

I=$65 is the interest.

We substitute the values into the formula to get;

`65=(P* (7)/(6)* 3)/(100)`

Simplify to get;

`65* 100=P* (7)/(2)* 1`

`(6500*2)/(7)=P`

`1857.14=P`

You should invest approximately $1857

Answer 2

The investment amount is approximately $63

Explanation:

Formula:-

Simple interest I = PNR/100

P - Principle amount

N - Number of years

R - Rate of interest

It is given that,

To find the amount to be invest

we have,

P = ? N 14 months = 7/6 years and R = 3%

P + PNR/100 = 65

P[1 + NR/100] = 65

P[1 + (7*3)/(6*100)] = 65

P[1 +7/200] = 65

P[207/200] = 65

P = (65*200)/207 62.801 ≈ 63

Therefore the investment amount is approximately $63