Question

An investment earn 6% simple interest. What amount of principal is need to have $3000 after 5 years

Answer 1

Answer:

The amount of $1000 principal is needed to have $3000 after 5 years.

Step-by-step explanation:

As the interest formula is

$I=Prt$

Where

• P is the principle

• r is the rate in decimal

• t is the time in years

Substituting the following values in the interest formula and solve for P

I=$3000

r = 6% = 6/100 = $0.06$

t = 5

so the equation becomes

$I=Prt$

$3000=P\left(0.06\right)\left(5\right)$

switch both sides

$P\left(0.06\right)\left(5\right)=3000$

$P\left(0.3\right)=3000$

$P=10000$ $

Therefore, the amount of $1000 principal is needed to have $3000 after 5 years.