Praxis Core Practice Question

Mometrix’s Praxis Core Question of the Day

Mathematics

Josephine invests a sum of money at 4% simple interest for a year. At the end of this time, she has earned $200 in interest. What was the original amount of money that she invested?

a. $5000

b. $4000

c. $6000

d. $6400

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Answer

A: Since the interest rate is 4%, the amount paid after one year is I = 0.04 × P, where P is the amount of the original investment. Since I = $200, solving for P yields P=$200/.0.04 = $5,000.

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Jay Willis

Jay Willis joined Mometrix as Vice President of Sales in 2009, and has developed several key strategic relationships that have enhanced the distribution of Mometrix products. With nearly 20 years of sales experience in the publishing industry, his dedication to providing the highest quality experience for customers, coupled with his sales and marketing expertise, has resulted in significant growth of the Institutional Sales division.

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