Question

It pays 6% interest annually for 2 years.

Liam would like to earn $750 in interest.

How much money does he need to put in?

Answer 1

`~~~~~~ \textit{Simple Interest Earned} \\\\ I = Prt\qquad \begin{cases} I=\textit{interest earned}\dotfill & \$750\\ P=\textit{original amount deposited}\\ r=rate\to 6\%\to (6)/(100)\dotfill &0.06\\ t=years\dotfill &2 \end{cases} \\\\\\ 750 = (P)(0.06)(2)\implies \cfrac{750}{(0.06)(2)}=P\implies 6250=P`