Question

Joey made a deposit into an account that earns 6% simple interest. After 3 years Joey earned 400$. How much was joeys initial deposit

Answer 1

You would do
I= prt
I=$400 (0.06) (3)
I= 72
The 6% was changed into a decimal (0.06)
So I multiplied 400 x 0.06 x 3
The 400 would be the principal amount the 6% would be the rate and the 3 would be the time

Answer 2

Answer: $2222.22.

Explanation:

Formula to find the simple interest :
`I=PRT` ...(i)

, where P = Principal amount , R = rate of interest ( in decimal) and T = Time.

Given : Rate of interest : r=6% = 0.06

Time : t= 3 years

I = $400

Substitute all values in (i) , we get

`400=P(0.06)(3)`

`\Rightatrow\ 400=P(0.18)\\\\\Rightarrow\ P=(400)/(0.18)\approx\$2222.22`

Hence, the initial deposit = $2222.22.