Problema Solution
After
8
years, Mike's account earned
$1800
in interest. If the interest rate (in decimal form) is
0.1
, how much did Mike initially invest
Answer provided by our tutors
t = 8 years
I = $1,800
r = 0.1 or 10%
P = the initial investment
we will assume that the interest is simple. in such case
I = P*r*t
P = I/(r*t)
P = 1800/(0.1*8)
P = $2,250
Mike invested $2,250.