Question

Jermy deposited money into a savings account that pays a simple annual interest rate of 1.6%. He earned 55.04 in interest after 4 years. How much did he deposit?.

860
1376
2976
3440

Answer 1

Answer: THE ANSWER IS A) $860

Step-by-step explanation: I GOT A 100 ON THE TEST

Answer 2

$860 is the principal amount. Therefore, choice A is right.

Simple interest rate is 1.6 percent.

$55.04 after simple interest.

t = 4 years

We must ascertain the principal sum.

Simple interest

The formula for simple interest is:
pxrxI
100
Substitute the given values.
D x 1.6x 4
55.04
100
5504 = 6.4p
5504
6.4
860 = 0
The principal value is $860. So, option A is
correct.