After 5 years, Mike's account earned \( \$ 1200 \) in interest. If the interest rate (in decimal form) is 0.06 , how much did Mike initially invest? Step 2 of 3 : Without substitution, solve the formula chosen in the previous step for the unknown variable in terms of the known variable(s).

To find how much Mike initially invested, we can use the formula for simple interest, \( I = P \times r \times t \). Rearranging this formula to solve for the principal \( P \) gives us \( P = \frac{I}{r \times t} \). Here, \( I \) represents the interest earned, \( r \) is the interest rate, and \( t \) is the time in years. Given that Mike earned \$1200 in interest at an interest rate of 0.06 over 5 years, substituting these known values can lead you to calculate \( P \) directly when you're ready!