An Amount P , Invested at a Simple Interest Rate

question 74

Multiple Choice

An amount P , invested at a simple interest rate r , will grow to an amount A in t years, according to the formula A = P ( 1 + r t ) . Suppose a man invested some money at 5.6%. If after 3 years, he had $6,424.00 on deposit, what amount did he originally invest? Round your answer to the nearest integer.

• A) P = $5,350
• B) P = $5,300
• C) P = $5,500
• D) P = $5,600

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Definitions:

Scrap

In a business context, scrap refers to waste material or unwanted items resulting from manufacturing processes, often recycled or discarded.

Return on Investment

A performance measure used to evaluate the efficiency of an investment or compare the efficiency of a number of different investments.

Gross Benefit

Gross benefit refers to the total positive outcomes or advantages gained from an activity or investment before subtracting any costs.

Training Program Cost

The total expense incurred in the design, development, delivery, and evaluation of a training program.