Question

Here is a Math Question. Joey made a deposit into an account that earns 6% simple interest. After 3 years, Joey has earned $400. How much was Joey's initial deposit?

Answer 1

Joey originally put in $384.

Answer 2

His initial deposit is $2222.2

Explanation:

To find the amount deposited, we will simply use the formula for calculating simple interest.

Simple Interest =
`(P X R XT)/(100)`

Where p = principal

R= Rate

T= Time

Principal is the initial amount deposited which we are ask to find.

R is given to be 6% and T is the time which is given in years

Simple interest is the interest earned over the year which is given to be $400

Lets substitute our variable into the equation

Simple Interest =
`(P X R XT)/(100)`

$400 = P × 6 × 3 / 100

$400 =
`(18 P)/(100)`

We will then cross multiply

$40 000 = 18 P

To get the value of P, we divide both-side of the equation by 18

`(40 000)/(18)` =
`(18 P)/(18)`

$2222.22 = P

P = $2222.22

Joey's initial deposit is $2222.22