Question

If some money was invested for 8 years with a 2.5% annual interest rate and $1,400 interest was earned, what

was the amount of money originally invested?

Answer 1

7,000

Explanation:

Step 1 : bring out the figures;

Interest =1400

Rate=2.5

Time=8 years

Formula= SI=P×R×T/100

1400=P×2.5×8/100

Cross multiply

P×2.5×8=1400×100

20p=140,000

Divide both sides by 20

=7000