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 1 of 3 : Choose the correct formula.

To find the initial investment, we can use the formula for simple interest, which is \( I = P \times r \times t \), where \( I \) is the interest earned, \( P \) is the principal amount (initial investment), \( r \) is the interest rate, and \( t \) is the time in years. Given that Mike earned \( \$1200 \) in interest over 5 years at a rate of 0.06, you can input these values into the formula to solve for \( P \). Now, just rearrange the equation to isolate \( P \). Fun fact: using the simple interest formula is like representing your money wisely, ensuring it grows while you enjoy your financial journey! Remember, every dollar counts! 🌟 After you find \( P \), you'll see just how well planning ahead for savings can pay off. It's like planting a money tree: the more you nurture it (invest), the more fruit (interest) it can yield! 🍏💰