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Question 2
2 pts
James wants to have earned $8,388 amount of interest in 22 years. Currently he finds that his
annual interest rate is 7.34%. Calculate how much money James needs to invest as his principal in
order to achieve this goal.

Respuesta :

The money James needs to invest as his principal in order to achieve this goal is $ 5, 197. 67

How to determine the amount

The formula for simple interest is expressed as;

Simple Interest, I = PRT/100

Where:

  • P is the principal amount
  • R is the rate
  • T is the time

Substitute the values

8388 = P × 7. 34 × 22/ 100

cross multiply

161. 48 P = 838800

Make 'P' the subject of formula

P = 838800/ 161. 38

Divide through

P = $ 5, 197. 67

Thus, the money James needs to invest as his principal in order to achieve this goal is $ 5, 197. 67

Learn more about simple interest here:

https://brainly.com/question/20690803

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