Answer:
Step-by-step explanation:
The formula for simple interest is
I = Prt,
where I is the interest earned,
P is the initial investment amount,
r is the interest rate in decimal form, and
t is the time in years. For us,
I = 75,
P = ?
r = .05
t = 1
Filling in what we were given:
75 = P(.05)(1) and
.05P = 75 so
P = 1500
