Question

Help please!!

Eric wants to earn $100 in simple interest in a bank account
earning 2% annually. How much principal would he need to invest
in the account to meet his interest goal in 5 years?

Answer 1

Principal is $1000

Explanation:

• From the formular of simple interest:

`s.i = principal * rate * time`

• substitute and find the principal:

`100 = p * (2)/(100) * 5 \\ \\ 0.1p = 100 \\ \\ = { \underline{ \: \:1000 \: \: dollars \: \: }}`