Solve.
-Alice invested some money at 19% simple interest. At the end of the year the total amount of her original principal and the interest was $11,305. How much did she originally invest?
A)$214,795
B)$1805
C)$9500
D)$595

Question

Quizplus · Accepted Answer

The formula for simple interest is $I = P \times r \times t$, where $I$ is the interest earned, $P$ is the principal amount (initial investment), $r$ is the annual interest rate (in decimal form), and $t$ is the time in years. Here, we know the total amount after 1 year is $11,305, which includes the original principal plus the interest earned at a rate of 19% (or 0.19 in decimal form). Let $P$ be the original investment. The interest earned can be expressed as $P \times 0.19$. The total amount after 1 year is the sum of the original investment and the interest earned, so $P + P \times 0.19 = 11,305$. Simplifying, we get $1.19P = 11,305$, and solving for $P$ gives $P = 11,305 / 1.19 = 9500$.

Solve. -Alice Invested Some Money at 19% Simple Interest. at the the End