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Liula [17]
3 years ago
11

After five years of earning interest at an annual rate of 4%, an investment has earned $1,200 in interest. Determine the amount

of the initial investment. Show all work for full credit.
Mathematics
2 answers:
Alex3 years ago
4 0
The initial investment was 1200 4percent a year is 48 dollars is 240 for 5 years add 1200 +240 =1440
34kurt3 years ago
4 0

Answer:

<em>$6000</em>

Step-by-step explanation:

<em>Let recall </em>

<em>Given the formula I = P*r*t  or principal x rate x time</em>

<em>Where I=Interest earned</em>

<em>P=principal, the amount deposited or borrowed</em>

<em>R=the annual interest rate</em>

<em>T=Time frame </em>

<em>Therefore $1200 = Px0.04x5 </em>

<em>P = 1200/(0.2) </em>

<em>P = 12000/2 = $6000</em>

<em>The amount of the initial investment id $6000</em>

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