Question

How much should you invest a 4.9% simple interest in order to earn $90 interest in 10 months?$ Round to 2 decimal places

Answer 1

Answer:

$2212.93 should be invested

Explanations:

Let the amount to be invested be the principal, P.

The interest rate, r = 4.9%

r = 4.9/100

r = 0.049

Time, t = 10 months

12 months = 1 year

10 months = 10/12

t = 10/12 years

t = 0.83

The interest in the next 10 months, I = $90

Interest, I, is given by the formula:

I = P x r x t

90 = P x 0.049 x 0.83

90 = P x 0.04067

P = 90 / 0.04067

P = $2212.93