Question

Use the I / Prt triangle method to answer the following question: Amos invested some money at 6.2% interest for 4 years and earned $744 in interest. How much money did he invest (what was the principal amount)?

a. $3000
b. $18451
c. $300
d. $30

Answer 1

To find the principal amount, divide the interest earned by the product of the interest rate and time. In this case, Amos invested $3000.

Step-by-step explanation:

To find the principal amount, we can use the formula:

Principal = Interest / (Rate x Time)

Given that the interest earned is $744, the interest rate is 6.2%, and the time is 4 years, we can substitute these values into the formula:

Principal = $744 / (0.062 x 4) = $3000

Therefore, Amos invested $3000.