Question

What sum of money, invested at 9%

interest per year, is needed to provide an
income of $45 per year?

Answer 1

$500

Explanation:

Intrest = P. A * Intrest Rate * Time

Time = 1 year, Intrest Rate = 9%, P. A. is what we need to find, Intrest is 45

45=x*9/100*1, x=500

Answer 2

500

Explanation:

I = PRT where I is the interest, P is the amount invested, R is the rate and T is the time

We want 1 year at 9% to get 45 dollars in interest

45 = P ( .09) (1)

45 = .09P

Divide each side by .09

45/ .09 = P

500 =P