Question

If a man earns $420 interest in one year at 7%, what was the amount of money invested?

a.$29.40
b.$60.00
c.$600.00
d.$6,000.00

Answer 1

We know, interest value = P * R * T /100
Here, I = 420
R = 7%
T = 1

Substitute their values,
420 = P * 7 * 1 /100
P = 420*100 / 7
P = 60*100
P = 6000

In short, Your Answer would be Option D) $6,000

Hope this helps!