Solve the problem.

-Kevin invested money in a savings account at a rate of 5% simple interest. After one year, he has $4935.00 in the account. How much did Kevin originally invest?
A) $51.95
B) $4930.00
C) $4700.00
D) $5194.74

Question

Solve the problem.

-Kevin invested money in a savings account at a rate of 5% simple interest. After one year, he has $4935.00 in the account. How much did Kevin originally invest?
A) $51.95
B) $4930.00
C) $4700.00
D) $5194.74

Quizplus · Accepted Answer

We can use the formula for simple interest:

I = P * r * t

where I is the interest earned, P is the principal (original investment), r is the interest rate as a decimal, and t is the time in years.

In this problem, we know that Kevin earned $4935.00 in interest after one year and that the interest rate was 5%. Plugging in these values into the formula, we get:

4935 = P * 0.05 * 1

Solving for P, we get:

P = 4935 / 0.05

P = 98,700

Therefore, Kevin originally invested $98,700. However, this is not one of the answer choices. We need to look for the answer choice that is closest to this value.

Of the answer choices given, C is the closest to $98,700. Therefore, the answer is C: $4700.00.

Solve the Problem. -Kevin Invested Money in a Savings Account at a Rate