Question

Brian invested in a savings bond for 3 years and was paid simple interest at an annual rate of 5%. The total interest that he earned was $105. How much did he Invest?

Answer 1

Brian invested $700 in the savings bond

Explanation:

To find the amount that Brian invested, you can set up an equation using the formula for simple interest:

I = P * r * t

Where:

I is the total interest earned

P is the principal (the initial amount invested)

r is the annual interest rate

t is the number of years the investment was held

In this case, we know that I = $105, r = 5%, and t = 3 years. We can plug these values into the formula and solve for P:

I = P * r * t

$105 = P * 5% * 3

P = $105 / (5% * 3)

P = $105 / (0.05 * 3)

P = $105 / 0.15

P = $700

Therefore, Brian invested $700 in the savings bond.