Question

Linda Murray's investment earned $77.00 in simple interest in 6 months at an annua
nterest rate of 7%. How much money did she invest?

Answer 1

Answer:

$\ 2,200$

Step-by-step explanation:

we know that

The simple interest formula is equal to

$I=P(rt)$

where

I is the Final Interest Value

P is the Principal amount of money to be invested

r is the rate of interest  

t is Number of Time Periods

in this problem we have

$t=6/12=0.5\ years\\ P=?\\ I=\ 77.00\\r=7\%=7/100=0.07$

substitute in the formula above

$77.00=P(0.07*0.5)$

solve for P

$77.00=0.035P$

$P=77.00/0.035$

$P=\ 2,200$