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| Math Central | Quandaries & Queries |
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Question from Jean, a student: If the yearly income from an investment is $30 and the annual interest rate is 12%,what is the original investment? |
Hi Jean,
If the annual interest rate is 12% and you invested $\$400$ then the income at the end of the year would be
$ 0.12 \times \$400 = \$48$
You don't know the amount invested so call it $P$. You know the income at the end of the year is $\$30$ so the expression in this case is
$ 0.12 \times \$P = \$30$
Solve for $P$.
Penny
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