Question

Solve the equation involving simple interest.

Sherica invested in a mutual fund, and at the end of 18 yr she has $11,180 in her account. If the mutual fund returned an
average yield of 4%, how much did she originally invest?

Answer 1

To find the original amount invested by Sherica in the mutual fund, we can use the formula for simple interest and set up an equation.

Step-by-step explanation:

To solve the equation involving simple interest, we can use the formula: Simple Interest = Principal × Rate × Time. Let's assume that the amount Sherica originally invested is x dollars. We know that at the end of 18 years, she has $11,180 in her account and the average yield of the mutual fund is 4%. Using the formula, we can set up the equation: 11180 = x × 0.04 × 18. Simplifying the equation, we get x = 11180 / (0.04 × 18) = 15,000. Therefore, Sherica originally invested $15,000 in the mutual fund.