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Bunuel
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Bunuel
Peter invests a sum of money and gets back an amount of $815 in 3 years. David invests an equal amount of money and gets an amount of $854 in 4 years. If both amounts were invested at the same rate (simple interest). What was the sum of money invested ?

A. 670
B. 664
C. 698
D. 744
E. 700

simple interest: amount=principal+(principal)(interest)(years)
given: 815=p+pi3 and 854=p+pi4
equate: pi=39
substitute: 815=p+(39)(3),…p=698

Answer (C).
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Is this really misleading to anyone? The wording "gets back an amount" is vague enough that it could refer to only the interest portion. Am I missing something that would denote that the 815 is the principal + interest payments?
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Is this really misleading to anyone? The wording "gets back an amount" is vague enough that it could refer to only the interest portion. Am I missing something that would denote that the 815 is the principal + interest payments?
Ideally, "gets back an amount" is the final amount someone gets back post their investment period. You can also observe that the difference in the amount with same Principal and Interest for 1 year is just $39, and the amount that they get back in 3 years is $815, so it has to be with principle, since 39*3 is just $117 i.e. interest.
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