Problema Solution
katerina Lubov inherited some money and invested it at 6% simple interest. At the end of the year, the total amount of her original principle and the interest was $19,080. How much did she originally invest?
Answer provided by our tutors
let
P = the principle or the money she originally invested
r = 0.06 or 6% annual interest
t = 1 year
A = $19,080 the future value
A = P(1 + rt)
P = A/(1 + rt)
P = 19080/(1 + 0.06*1)
P = $18,000
Katerina Lubov originally invested $18,000.