Question

In 9 years, Lance earned $3262.50 interest on a deposit made to an account that earned 2.7% simple interest per year: How much was Lance's original deposit? PLEASE HELP!!!!!!! Thank you.

Answer 1

$4055.28

Explanation:

Your formula is A=P(1+rt)

P is the amount of money Lance puts in = 3262.50

R is the interest rate in a decimal = .027

T is the time in years = 9

A=3262.50(1+.027x9)

Use a calculator

A=4055.28

Answer 2

$ 13,425.92

Explanation:

Lance made a deposit and after nine years he earns $3262.50 of interest.

The amount of the deposit he made is unknown so we will call it x, and that is what the problem is asking.

To know how much interest we earn we have to multiply the percent of interest times the money we have:

We know that 2.7% = 0.027; this is the interest per year. But we want to know for 9 years so we have to multiply the interest times 9.

(0.027*9)

After this, we have to multiply that times the money Lance has in the bank, and that will be equal to the interest earned:

0.027*9*x = $3,262.50

Now we have to solve for x

0.243*x = $3,262.50

x = $3,262.50/0.243

x= $13,425.92

Lance's original deposit was $13,425.92