Question

Basil earned $631.40 in 7 years on an investment at a 5.5% simple interest rate. how much was basils investment

Answer 1

Answer:

Option B. $\ 1,640$

Step-by-step explanation:

we know that

The simple interest formula is equal to

$I=P(rt)$

where

A is the interest amount Value

P is the Principal amount of money to be invested

r is the rate of interest  

t is Number of Time Periods

in this problem we have

$t=7\ years\\ I=\ 631.40\\r=0.055$

substitute in the formula above

$\ 631.40=P(0.055*7)$

$P=\ 631.40/(0.055*7)=\ 1,640$