How much should you invest at 3.4% simple interest in order to earn $50 interest in 13 months?
P * 0.034/12 * 13 = 50
solve for P
How much should you invest at 3.4% simple interest in order to earn $100 interest in 8 months?
To calculate how much you should invest at a 3.4% simple interest rate in order to earn $50 in 13 months, follow these steps:
Step 1: Start by identifying the given information:
- Simple interest rate: 3.4% (0.034 as a decimal)
- Time period: 13 months
- Desired interest amount: $50
Step 2: Use the formula for calculating simple interest: interest = principal x interest rate x time
Step 3: Plug in the given values into the formula:
- Interest amount: $50
- Interest rate: 0.034
- Time period: 13 months
Interest = Principal x 0.034 x 13
Step 4: Rearrange the formula to solve for the principal:
Principal = Interest / (interest rate x time)
Principal = $50 / (0.034 x 13)
Step 5: Calculate the principal:
Principal = $50 / (0.442)
Principal ≈ $113.13
Therefore, you should invest approximately $113.13 at a 3.4% simple interest rate to earn $50 in 13 months.
To calculate how much you should invest at a given interest rate to earn a certain amount of interest, you can use the formula for simple interest:
Interest = Principal x Rate x Time
In this case, you want to earn $50 interest in 13 months with a 3.4% simple interest rate. Let's assign variables to the information given:
Interest = $50
Rate = 3.4% = 0.034 (in decimal form)
Time = 13 months
Now, we can rearrange the formula to solve for the principal:
Principal = Interest / (Rate x Time)
Plugging in the values:
Principal = $50 / (0.034 x 13)
Now, if we solve this equation, we will get the amount you should invest to earn $50 in interest over 13 months at a 3.4% simple interest rate.