When Invested At An Annual Interest Rate 7% An Amount Earned 11,200 Of Simple Interest In Two Years. How Much Money Was Originally Invested?,

When invested at an annual interest rate 7% an amount earned 11,200 of simple interest in two years. how much money was originally invested?

 

Answer:

The amount originally invested was 80,000.

Step-by-step explanation:

Given:

Interest earned (I) = 11,200

Simple interest rate (R) = 7% or 0.07

Time (T) = 2 years

Principal (P) or amount invested = unknown

Solve for P, the amount invested:

I = P×R×T

Substitute with given values:

11,200 = P(0.07)(2)

P = 11,200 ÷ (0.07)(2)

P = 11,200 ÷ 0.14

P = 80,000