Multiple choice

Mr. Rockford wishes to earn $65,000 as an interest amount in 4 years. So, he invests 'x' dollars in a savings scheme, which pays 10% simple interest. Calculate the value of 'x'.

  1. 152,500

  2. 162,500

  3. 165,000

  4. 172,500

  5. 187,500
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B Correct answer
Explanation

Simple interest is calculated as I = P * r * t. Given I = 65000, r = 0.10, and t = 4, we have 65000 = x * 0.10 * 4. Solving for x gives 65000 / 0.4 = 162500.

AI explanation

Using the simple interest formula, interest equals principal multiplied by rate and time. We have 65000 equals x times 0.10 times 4, which simplifies to 65000 equals 0.40x. Solving for x gives x equals 65000 divided by 0.40, resulting in a principal of 162500.

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