Multiple choice

Mason invested some amount of money in Milton Finances at simple interest. After 3 years, the amount was \$5,640 and after 4 years, it was \$6,000. What sum of money did he invest?

  1. $4,450
  2. $4,560
  3. $4,595
  4. $4,700
  5. $48,500
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Interest for 1 year = 6000 - 5640 = 360. Interest for 3 years = 3 * 360 = 1080. Principal = 5640 - 1080 = 4560.

AI explanation

The interest earned per year is the difference between the amounts after 4 years and 3 years, which is 6000 minus 5640, giving an annual interest of 360. The total interest over 3 years is 360 times 3, which equals 1080. Subtracting this total interest from the amount after 3 years gives the original principal, so 5640 minus 1080 equals 4560.

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