Question

A savings bond currently made Jamar $2,112.64 worth of interest in 7 years. If the investment gained 5.5% annual simple interest each year, approximately how much was the bond originally bought for?

A.$1381.81
B.$2673.21
c.$4903.23
D.$5487.36

Answer 1

D; it was bought for $5,487.36

Explanation:

Let the investment amount be $x

We use the formula for simple interest to get the interest

(2112.64-x) = (x * 5.5 * 7)/100

211264-100x = 38.5x

138.5x = 211264

x = 211264/138.5

x = 5,847.36