Question

Shen invested in a savings bond for 2 years and was paid simple interest at an annual rate of 2% the total interest that he earned was $28 how much did he invest 

Answer 1

Principal = $700

Explanation:

Simple interest = principal × rate × time

Simple interest = $28

Rate = 2% = 0.02

Time = 2 years

Principal = x

Simple interest = principal × rate × time

28 = x * 0.02 * 2

28 = 0.04x

x = 28/0.04

x = $700

Principal = x = $700