Question

After 5 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

Answer 1

`\bf \qquad \textit{Simple Interest Earned}\\\\ I = Prt\qquad \begin{cases} I=\textit{interest earned}\to &\$950\\ P=\textit{original amount deposited}\\ r=rate\to 3\%\to (3)/(100)\to &0.03\\ t=years\to &5 \end{cases} \\\\\\ 950=P\cdot 0.03\cdot 5`

solve for P.