Question

Kaleb makes an investment at 5.2 percent simple interest. At the end of 1 year, the total value of the investment is $2419.60. How much was originally invested?

Answer 1

The future amount of the current deposit given that the interest is simple and yearly is computed through the equation,
F = P x (1 + in)
where P is the principal amount, F is the future amount, i is the interest (in decimal form) and n is the number of years.

In this certain problem, we substitute the known values to the equation and solve for P,
2419.60 = P x (1 + (0.052)(1))
P = 2300
Thus, the initial investment was worth $2,300.