Question

Two years ago Sarah put money in a simple interest account that earned
3.5% interest. After two years she earned $525 in interest. What was
Sarah's initial investment?
*
$7500
$7000
$8025
$6975

Answer 1

Answer:

7000

We have: I = P × R × T / 100

Here, I = 980

P = 7000

T = 8

Substitute their values into the expression:

980 = 7000 × R × 8 / 100

R = 980 × 100 / 7000 × 8

R = 98000 / 56000

R = 1.75%

In short, Your Answer would be 1.75%