We are told that $168.00 represents 8% of the contract price; therefore,we know that
original price *( 8/100) = $168.00
Now, writing out "original price" is a bit space-consuming; therefore, we will just rename it and say
original price = OP
Then, our equation above can be written as
We solve for OP (original price) by multiplying both sides by 100 and then dividing by 8. This gives us
Hence, the original contract price is $2100.
Answer:
You should invest $2000 at 5% simple interest in order to earn $100 interest in 12 months.
Step-by-step explanation:
Using the formula
where
I = Interest earned
P = The principal (let say in $)
r = The Interest Rate
t = time
Given that
Thus,
100 = P × 5% × 1
100 = P × 5/100 × 1
100 × 100 = P × 5
10000 = P × 5
P = 10000/5
= 2000 (let say in $)
Thus, you should invest $2000 at 5% simple interest in order to earn $100 interest in 12 months.