Question

The simple interest formula I=prt gives the interest earned on an investment of p dollars at interest rate r for a time of t years. How much does Leroy need to invest at a rate of 7% in order to earn $420 interest in 4 years?

$150

$2,400

$240

$1,500

Answer 1

I divided 420 by 4 to get 105 then divided 105 by 7 percent and recieved $1,500 as my answer