You are ready to buy a house, and you have $20,000 for a down payment and closing costs. Closing costs are estimated to be 4% of
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The amount invested is $ 470
<h3><u>Solution:</u></h3>Given that , we have earned $131.60 as simple interest for an amount deposit at the rate of 4% for seven years.
We have to find the amount invested. That is, we need to find the principal sum
Let us use the simple interest formula
<em><u>The simple interest is given as:</u></em>
Here, simple interest = $ 131.60
Rate of interest = 4 %
Number of years = 7
principal = ?
Substituting the values in formula, we get
Thus the amount invested is $ 470