Question

Kathy inherited some money and invested it at 6% simple interest. At the end of the year, the total amount of her original principal and the interest was $12720. How much did she originally invest?

Answer 1

are we to assume that the interest is figured into the equation only once during the year?

Answer 2

if so; then we have:

12720 = (P*r*1) + P

Answer 3

where r = the decimal format for 6%, or simply .06

Answer 4

0.06*12720=763.2