Problema Solution

Gary makes an investment at 4.5% simple interest. At the end of the year, the total value is $3448.50. How much was originally invested.

Answer provided by our tutors

let


P = the amount originally invested


A = $3448.50 total value (future value)


r = 0.045 or 4.5% simple interest


t = 1 year


A = P(1 + rt)


P(1 + 0.045*1) = 3448.50


by solving we find:


P = $3,300


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$3,300 was originally invested.