Question 3 of 9 , Step 1 of 3 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? Sted 1 of 3 : choose the correct formula

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To find out how much Mike initially invested, we can use the formula for simple interest:

$$ \text{Interest} = \text{Principal} \times \text{Rate} \times \text{Time} $$

Given:
- Interest earned after 5 years = $1200
- Interest rate = 0.06 (in decimal form)
- Time = 5 years

We need to find the Principal (initial investment).

Let's denote the Principal as $$ P $$.

The formula for simple interest is:
$$ 1200 = P \times 0.06 \times 5 $$

Now, we can solve for $$ P $$ to find the initial investment.
Solve the equation by following steps:
- step0: Solve for $$P$$:
  $$1200=P\times 0.06\times 5$$
- step1: Multiply:
  $$1200=0.3P$$
- step2: Swap the sides:
  $$0.3P=1200$$
- step3: Divide both sides:
  $$\frac{0.3P}{0.3}=\frac{1200}{0.3}$$
- step4: Divide the numbers:
  $$P=4000$$
To find Mike's initial investment, use the simple interest formula: $$ \text{Interest} = \text{Principal} \times \text{Rate} \times \text{Time} $$ Given: - Interest = $1200 - Rate = 0.06 - Time = 5 years So, $$ 1200 = P \times 0.06 \times 5 $$ Solving for $$ P $$ gives the initial investment.

Question 3 of 9 , Step 1 of 3 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? Sted 1 of 3 : choose the correct formula

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