A certain investment earns 20 percent interest annually. if the investment has earned $30 after one year, what was its original value?
A. $100
B. $120
C. $150
D. $175
E. $180
The OA is C
Source: Princeton Review
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Percents and Interest Problems, Word Problems
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deloitte247
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Let the certain investment = x
x earns 20% annually to give $30
Therefore, 20% of x = 30
$$\frac{20}{100}\cdot x=30$$
$$x=\frac{30\cdot100}{20}=$150$$
Answer = option C
x earns 20% annually to give $30
Therefore, 20% of x = 30
$$\frac{20}{100}\cdot x=30$$
$$x=\frac{30\cdot100}{20}=$150$$
Answer = option C
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Scott@TargetTestPrep
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Solution:
Since principal x rate = interest, We can create the equation where p is the original value of the investment:
p * 0.2 = 30
p = 30/0.2 = 300/2 = 150
Answer: C
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