Answer:
[tex]\$1,640[/tex]
Step-by-step explanation:
we know that
The simple interest formula is equal to
[tex]I=P(rt)[/tex]
where
I is the interest Value
P is the Principal amount of money to be invested
r is the rate of interest
t is Number of Time Periods
in this problem we have
[tex]t=7\ years\\ I=\$631.40\\r=0.055[/tex]
substitute in the formula above and solve for P
[tex]631.40=P(0.055*7)[/tex]
[tex]P=631.40/(0.055*7)=\$1,640[/tex]
