How much money should be invested at an annual rate of 12 percent in order to earn 300 dollars interest in a year?

Answer 1

300 = 12% of 'x' .

300 = 0.12x

Divide each side of the equation by 0.12 :

x = 300/0.12 = $2,500.00

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Another way to find it is like this:

2500 dollars. To find this, you make the porportion ' 300/12=x/100 .' The value you need to find is 'x,' and the '100' and '12''s are percentages. Since you want 300 as your 12 percent interest, you put the 300 above the twelve. To solve, you cross-multiply 300*100 to equal 30,000. You then divide 30,000 by 12. 30,000/12= 2,500, so 2,500 is 'x,' or your answer, the amount to be put in for 300 dollars in a year.

-Ben

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