If you earned $2,000 interest for 2 years at 7%, how much money did you originally invest?
Thanks.
1 = prt
2000 = p* 0.07 * 2
2000/2 = p * 0.07 * 2/2
1000 = p * 0.07
1000/0.07 = p * 0.07/0.07
14,285.71 = P
I = prt
2000 = p * 0.07 * 2
Solve for p.
Right!
Thanks greatly, Ms. Sue, for your help tonight. Will be getting back on tomorrow evening. Good night.
Garnett
You're very welcome, Garnett. See you tomorrow.
To find out how much money you originally invested, we can use the formula for calculating simple interest:
Interest = Principal * Rate * Time
Given:
Interest = $2,000
Rate = 7% (or 0.07 in decimal form)
Time = 2 years
Let's substitute these values into the formula and rearrange it to solve for the Principal (the initially invested amount).
Principal = Interest / (Rate * Time)
Principal = $2,000 / (0.07 * 2) = $2,000 / 0.14 = $14,285.71 (rounded to two decimal places)
Therefore, you originally invested approximately $14,285.71.
If you have any further questions, feel free to ask!