Percents and Interest Problems, Word Problems

[swerve]

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

[deloitte247]

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

[Scott@TargetTestPrep]

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

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