Question

Samuel deposited money in an account that’s pays an annual simple interest rate at 3.5%. At the end of 5 years, Samuel earns $2625.00 in interest. How much money did he deposit in the account?

Answer 1

$15,000

Explanation:

The amount of simple interest is computed using the formula ...

I = Prt

where I is the interest earned; P is the principal invested at rate r for time period t.

Fill in the given information and solve for P.

$2625 = P·0.035·5

$2625/0.175 = P = $15,000

Samuel deposited $15,000 in the account.