Question

Hans invested in a savings bond for 2 years and was paid simple interest at an annual rate of 5%. The total interest that he earned was$200. How much did he invest?

Answer 1

Answer:

The amount invested = $2000

Explanations:

The amount invested is the Principal

Let the Principal be represented as P

Time, T = 2 years

Annual Rate = 5%

Interest, I = $200

The formula for Simple Interest in given as:

`I\text{ = }(PRT)/(100)`

Substitute the values of I, R, and T into the Interest formula in order to solve for P

`\begin{gathered} 200\text{ = }\frac{P\text{ }*\text{ 5}*2}{100} \\ 200(100)\text{ = 10P} \\ 20000\text{ = 10P} \\ P\text{ = }(20000)/(10) \\ P\text{ = 2000} \end{gathered}`

The amount invested = $2000