For this problem, the numbers can be plugged back into the simple interest rate formula:
I = (P)(r)(t)
I is the interest
P is the principal/initial value
r is the interest rate
t is the time (in years)
-Jack's investment is the principal/initial value.
-The interest is rate is 0.03 (decimal form)
-The time in years is 6 years.
-Jack earned $972
Plug these values in and you get:
$972 = (P)(0.03)(6)
Now solve for P:
Multiply 0.03 and 6
$972 = (P)(0.18)
Divide both sides by 0.18
$972/0.18 = (P)/(0.18)
You would end up with
$5400 = P
So the answer is $5400
