Question

PLS HELP | Shen invested in a savings bond for 4 years and was paid simple interest at an annual rate of 6%. The total interest that he earned was $2160. How much did he invest?

Answer 1

Shen invested $9000.

Explanation:

The simple interest formula is i = prt, where p is the principal amuont, r is the annual interest rate as a decimal fraction and t is the time in years.

Here, $2160 = P*0.06*(4 yrs), so:

$2160

P = ----------------- = $9000

0.24