How much should you invest at 5% simple interest in order to earn $100 interest in 12 months?

You should invest $2000 at 5% simple interest in order to earn $100 interest in 12 months.

Step-by-step explanation:

Using the formula

where

I = Interest earned

P = The principal (let say in $)

r = The Interest Rate

t = time

Given that

Thus,

100 = P × 5% × 1

100 = P × 5/100 × 1

100 × 100 = P × 5

10000 = P × 5

P = 10000/5

  = 2000 (let say in $)

Thus, you should invest $2000 at 5% simple interest in order to earn $100 interest in 12 months.

quit

step-by-step explanation: