How much money would have to be invested in an account, which yields 3

x+3%(x) = 721

1.03 (x) = 721

x = 700 Ans :B

We can use the simple interest formula:

Interest = principal x rate x time

I = p x r x t

We need to find p, the principal amount invested. Recall that the total investment value is $721, which is the sum of the original principal plus the interest earned during the year. Thus, we know that at the end of the year we have:

p + I = 721

In other words, p + p x r x t = 721

We can substitute 3/100 for the rate r, and 1 for the time in years:

p + p(3/100)(1) = 721

p + 3p/100 = 721

100p + 3p = 72100

103p = 72100

p = 72100/103 = 700

Alternate Solution: Looking at the answer choices, we can immediately eliminate C, D, and E. The beginning principal cannot be greater than the accumulated amount of money in the account (principal plus interest) at the end of the year. Between A and B, we can determine that $554.62 is too low to become $721 in a year at 3% interest.

Answer: B

721-103%
?-100%
? 72100/103 or we can just try 700+7( or 1 %)*3=721

\(\frac{721}{103}*100\) \(= 700\)

Thus, the correct answer must be (B) 700

How much money would have to be invested in an account, which yields 3% annual interest, for a period of a year in order to earn a total investment value of $721?

A. $554.62
B. $700.00
C. $721.00
D. $742.63
E. $937.30

Let Principal be P.
Interest = 3%
Time = 1 year
Total Amount after 1 year = $721

SI = \(\frac{PTR}{100}\) (SI = Simple interest, P = Principal, T = Time, R = Rate of interest)
Amount = P + SI = P + \(\frac{PTR}{100}\) = P (1+ \(\frac{TR}{100}\)) = P(1+\(\frac{3}{100}\)) = P(\(\frac{103}{100}\)) = 1.03P
721 = 1.03P
P = \(\frac{721}{1.03}\) = $700
Answer B...

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Let x be the amount required to be invested
So x * 1.03 = 721
-> x = 721/1.03 = 700$

Recall that A = P(1 + rt), in which P is the principal (i.e., amount invested), A is the total amount at the end of the term, r is the annual interest rate, and t is the term in years. We can create the following equation in which P is the initial number of dollars invested.

721 = P(1 + 0.03(1))

721 = P(1.03)

P = 721/1.03 = 700

Answer: B