I am a student.

How much do you have to deposit to an account that earns 6% annually if you want to earn $1200 on the account?

I was asked this question recently in class, and I nearly had an aneurysm trying to answer it.

Please advise.



Hi Christine. No math class problem is worth that! :)

Think about it this way: That 6% is your earnings. So is the $1200. That
means they equal each other. So 6% of your investment is $1200. Written
as an equation, that is:

6% x I = $1200.

If you solve for I, you'll have your answer.

I hope this helps.
Stephen La Rocque>