Question

a savinas bond for 5 years and was paid simple interest at an annual rate of 5%. The total interest that he earned was $1000. How much did he invest

Answer 1

The student invested $4000.

Step-by-step explanation:

To find the amount the student invested, we need to use the formula for simple interest:

Interest = Principal × Rate × Time.

In this case, the interest earned is $1000, the rate is 5%, and the time is 5 years.

Let's represent the principal amount as P.

So we can write the equation as: $1000 = P × 0.05 × 5.

To solve for P, we divide both sides of the equation by 0.05 × 5.

This gives us P = $1000 / (0.05 × 5)

= $4000.

Therefore, the student invested $4000.