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How much should you invest at 2.8% simple interest in order to earn $55 interest in 14 months?

User Scott Law
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1 Answer

2 votes

Remember that

The simple interest formula is equal to


I=P\mleft(rt\mright)

where

I is the Final Interest Value

P is the Principal amount of money to be invested

r is the rate of interest

t is Number of Time Periods

in this problem we have

I=$55

r=2.8%=2.8/100=0.028

t=14/12=7/6 years

substitute given values


55=P\mleft(0.028\cdot(7)/(6)\mright)

solve for P

P=$1,683.67

User Ajaybc
by
3.3k points