Question

PLEASE ANSWER!!!!! After five years of earning interest at an annual rate of 3%, an investment has earned $950 in interest. To the nearest whole dollar, determine the amount of the initial investment. Show all work for full credit.

Answer 1

Problem
After five years of earning interest at an annual rate of 3%, an investment has earned $950 in interest. To the nearest whole dollar, determine the amount of the initial investment.

Result
The initial investment was $6,333.

Solution
P = I/ i · t
P = 950/ 0.03 · 5
P = 6,333.333