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Abigail has an account that pays 6. 92% simple interest per year and wants to accumulate $5,896 in interest from this account over six years. How much money should abigail invest in this account to meet this goal? a. $2,448. 02 b. $8,344. 10 c. $14,200. 39 d. $20,096. 67 please select the best answer from the choices provided a b c d.



Answer :

The amount to be invested is c. $14,200.39.

The formula for calculating of simple interest is -

Simple Interest = Principal × Rate × Time ÷ 100

Keep the values in formula to find the principal amount to be invested to earn mentioned interest.

5896 = Principal × 6.92 × 6/100

Rewriting the equation

Principal = (5896 × 100) ÷ (6.92 × 6)

Performing multiplication in numerator and denominator on Right and Side of the equation

Principal = 589600 ÷ 41.52

Performing division on Right and Side of the equation

Principal = 14,200.39

Thus, the principal amount should be $14200.39.

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