Question

If a man earns $420 interest in one year at 7%, what was the amount of money invested? $29.40 $60.00 $600.00 $6,000.00

Answer 1

Answer:

Option D is correct.

Amount of money Invested is, $ 6,000.00

Explanation:

Given: A man earns $420 interest in one  year at 7%.

Use Simple Interest to calculate the principal(Amount of money invested) we have;

$I = \frac{P \times R \times T}{100}$                            ......[1]

where, I is the interest , R is the rate , P is the principal or amount of money invested and T is the time.

From the given condition:

$I= 420$ , R= 7% and T= 1 year.

Substitute these in [1] we have;

$420=\frac{P \times 7 \times 1}{100}$ or

$420=\frac{7P}{100}$ or

$P=\frac{420 \times 100}{7}$

On Simplify, we get;

P=$6,000.00

Therefore, the amount of money invested is, $6000.00

Answer 2

Correct answer is D. 6,000.00

hope this helps