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23 February, 08:57

How much should you invest at 4% simple interest in order to earn $50 interest in 6 months

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  1. 23 February, 09:22
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    Simple interest formula

    Interest = Pit = $50

    P=principal (initial investment)

    i=annual interest rate = 0.04

    t=time in years = 6 months = 0.5 years

    Substitute values,

    $50 = P*0.04*0.5

    Solve for P

    P=$50 / (0.04*0.5) = $2500
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