Question

Safiya deposited money into a bank account that earned 6.5% simple interest each year. After 312 years, she had earned $36.40 in interest on the account.

If no other money was deposited into or withdrawn from the account, how much was her initial deposit?

Answer 1

$1.80

Explanation:

Use formula

`I=P\cdot i\cdot t,`

where I is interest, P is total principal, i is rate of interest per year (as decimal) and t is total time in years.

In your case,

I=$36.45, t=312, i=0.065, then

`36.45=P\cdot 0.065\cdot 312,\\ \\P\approx \$1.80`