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Olegator [25]
3 years ago
15

Katie earned $1200 in 8 years on an investment at a 6% annual simple interest rate. How much was Katie’s investment?

Mathematics
1 answer:
Alekssandra [29.7K]3 years ago
8 0
Given
Time = 8 yer a
Rate = 6% = 0.06
Interest earned = $1200
Simple Interest

Let P = the principal (the investment)
Then
P*8*0.06 = 1200
0.48P = 1200
P = 1200/0.48 = $2500

Answer: $2500

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