Question

How much should you invest at 3% simple interest in order to earn $65 interest in 14 months?

Answer 1

Answer:

The investment amount is approximately $63

Step-by-step explanation:

Formula:-

Simple interest I = PNR/100

P - Principle amount

N - Number of years

R - Rate of interest

It is given that,

To find the amount to be invest

we have,

P = ? N 14 months  = 7/6 years and R = 3%

P + PNR/100 = 65

P[1 + NR/100] = 65

P[1 + (7*3)/(6*100)] = 65

P[1 +7/200] = 65

P[207/200] = 65

P = (65*200)/207 62.801 ≈ 63

Therefore the investment amount is approximately $63

Answer 2

Answer:

You should invest approximately $1857

Step-by-step explanation:

The simple interest is calculated using the formula;

$I=\frac{P\times T\times R}{100}$

Where P is the principal - the amount to be invested.

We must convert the 14 months to years.

$T=\frac{14}{12}=\frac{7}{6}$ is the time in years.

$R\%=3\%$ is the rate percent.

I=$65 is the interest.

We substitute the values into the formula to get;

$65=\frac{P\times \frac{7}{6}\times 3}{100}$

Simplify to get;

$65\times 100=P\times \frac{7}{2}\times 1$

$\frac{6500\times2}{7}=P$

$1857.14=P$

You should invest approximately $1857