Question

A certain amount of money was invested for one year at a rate of 7.5
At the end of that year it had earned $675. How much money was invested? explain with steps

Answer 1

We need to find the money invested.It is the principal. Let it be P.
Time = 1 year
Rate = 7.5%

he earned = $675
So interest = $675

interest = PTR/100

$675= \frac{P*1*7.5}{100} \\ \\ 675*100=7.5P \\ \\ 67500=7.5P\\ \\ P= \frac{67500}{7.5} =9000$

So $9000 was invested.

Answer 2

Let the amount invested is principal amount= P
Rate of interest r=7.5/100
Time = t = 1
Interest earned= I = 675 $
We have I= P*r*t
           ⇒ 675 = P*7.5*1/100
           ⇒ P = 675*100/7.5
               P = 9000 $
Money invested was $ 9000