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
Upstudy AI Solution
Answer
Solution

Sign in to Unlock Answers for Free!
A Learning Platform Trusted by Millions of Real Students and Teachers.

Answered by UpStudy AI and reviewed by a Professional Tutor
Bonus Knowledge
To find out how much Mike initially invested, we can use the simple interest formula: \( I = P \times r \times t \), 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. Here, the interest earned is \$1200, the rate is 0.06, and the time is 5 years. Plugging in these numbers, the formula becomes \( 1200 = P \times 0.06 \times 5 \). Now, you can solve for \( P \) to find out Mike's initial investment! It's like being a detective, but your mystery is how much money he started with! Once you have your equation set up, solving for \( P \) involves dividing the interest earned by the product of the rate and time. Don’t skip the math; turning 'interest' into 'investment' is a magical process! It's akin to planting a seed today and watching your money sprout in the years to come!