Use the simple interest formula.
-Alice invested some money at 11% simple interest. At the end of the year the total amount of her original principal and the interest was $9768. How much did she originally invest?
A) $968
B) $107,448
C) $888
D) $8800

Question

Quizplus · Accepted Answer

Let x be Alice's original investment. Therefore, she earns 0.11x in interest. The total amount of her investment and interest is given by x + 0.11x = 1.11x. We know that 1.11x = 9768, so x = 8800. Thus, Alice originally invested $8800. Let x be the original amount Alice invested. According to the simple interest formula, after one year the total amount will be x + (0.11x) = 1.11x. We know that 1.11x = $9768. Solving for x, we get x = $8800. Therefore, Alice originally invested $8800.

Use the Simple Interest Formula