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Christian earned $631.40 in 7 years on an investment at a 5.5% simple interest rate. How much was Christian's investment?

User Lendrick
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1 Answer

3 votes

Answer:


\$1,640

Explanation:

we know that

The simple interest formula is equal to


I=P(rt)

where

I is the interest Value

P is the Principal amount of money to be invested

r is the rate of interest

t is Number of Time Periods

in this problem we have


t=7\ years\\ I=\$631.40\\r=0.055

substitute in the formula above and solve for P


631.40=P(0.055*7)


P=631.40/(0.055*7)=\$1,640

User Mabalenk
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