Question

The simple interest on a sum of money invested 6 months at 5% per annum is $1680. Determine the amount of money invested.

Answer 1

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Answer:

$67,200

Explanation:

The amount if interest is given by the formula ...

I = Prt

where P is the amount invested, r is the annual rate, and t is the number of years. Here, we want to find P when r = 0.05 and t = 1/2 such that I = 1680.

P = I/(rt) = $1680/(0.05·0.5) = $1680/0.025

P = $67,200

The amount invested was $67,200.

Explanation: