the equation, a = p(1 + 0.037t), represents the amount of money earned on a savings account with 3.7% annual…

the equation, a = p(1 + 0.037t), represents the amount of money earned on a savings account with 3.7% annual simple interest. if the amount after 5 years is equal to $1,422, what is the amount of the principal investment? $1,200 $1,422 $274.25 $294.86

the equation, a = p(1 + 0.037t), represents the amount of money earned on a savings account with 3.7% annual simple interest. if the amount after 5 years is equal to $1,422, what is the amount of the principal investment? $1,200 $1,422 $274.25 $294.86

Answer

Explanation:

Step1: Substitute values into formula

Given $A = P(1 + 0.037t)$, $A = 1422$ and $t=5$. So, $1422=P(1 + 0.037\times5)$.

Step2: Simplify the right - hand side

First, calculate $0.037\times5 = 0.185$. Then $1+0.185 = 1.185$. The equation becomes $1422 = 1.185P$.

Step3: Solve for $P$

Divide both sides of the equation by $1.185$: $P=\frac{1422}{1.185}=1200$.

Answer:

A. $1,200