Answer to Question #288119 in Financial Math for Rychiko

Question

When invested at an annual interest rate of 7% the amount earned P11,200 of simple interest in 2 years. How much money was originally invested?

Answer 1

for simple interest:

$A=P(1+rt)$

 originally invested:

$P=A/(1+rt)=11200/(1+0.07\cdot2)=9824.56$