Answered

3. What amount of money is necessary to be invested at 5% simple interest to yield $320 in interest after 4 years?

Answer :

MrRoyal

Answer:

[tex]Amount = \$1920[/tex]

Step-by-step explanation:

Given

[tex]Interest =\$320[/tex]

[tex]Rate = 5\%[/tex]

[tex]Years = 4[/tex]

Required

Determine the invested amount

First, we need to determine the Principal

This is calculated as:

[tex]Interest = Principal * Rate * Time[/tex]

Solve for Principal

[tex]Principal = \frac{Interest}{Rate * Time}[/tex]

[tex]Principal = \frac{\$320}{0.05 * 4}[/tex]

[tex]Principal = \frac{\$320}{0.2}[/tex]

[tex]Principal = \$1600[/tex]

Add the principal to the interest

[tex]Amount = Principal + Interest[/tex]

[tex]Amount = \$1600 + \$320[/tex]

[tex]Amount = \$1920[/tex]

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