To the nearest dollar, how much money would have to be invested from June 4 until December 22 at 13%, in order to earn $750 in interest? $2,186 Correct Answer $10,476 You Answered $5,151 $12,840 $5,769
Question
To the nearest dollar, how much money would have to be invested from June 4 until December 22 at 13%, in order to earn 2,186 Correct Answer 5,151 5,769
Solution
To solve this problem, we need to use the formula for simple interest which is I = PRT, where I is the interest, P is the principal amount (the initial amount of money), R is the rate of interest, and T is the time.
In this case, we know the interest (I) is $750 and the rate of interest (R) is 13% or 0.13 as a decimal. The time (T) is the difference in months between June 4 and December 22, which is approximately 6.5 months or about 0.54 years (6.5/12).
We need to find the principal amount (P), so we rearrange the formula to P = I / (R * T).
Substituting the known values, we get P = 750 / (0.13 * 0.54) = $10,288.46.
Rounding to the nearest dollar, the amount of money that would need to be invested is $10,288.
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