Question

Gene paid a deposit on a leased car. The deposit earns 2.8 percent simple annual interest. At the end of the year, the interest that is earned is $22.40. What was the amount of the original deposit?

Answer 1

it would be 800 because 2.8% of 800 is 22.40 and that is your answer.

hope i helped :)

Answer 2

$800.

Explanation:

We have been given that Gene's deposit earns 2.8 percent simple annual interest. At the end of the year, the interest that is earned is $22.40. We are asked to find the amount of original deposit.

To find the original amount of deposit, we use simple interest formula:

`I=Prt`, where,

I = Amount of interest,

P = Principal amount,

r = Annual interest rate in decimal form,

t = Time in years.

Let us convert our given interest rate in decimal form.

`2.8\%=(2.8)/(100)=0.028`

Upon substituting our given values in above formula, we will get:

`\$22.40=P*0.028*1`

`\$22.40=P*0.028`

`(\$22.40)/(0.028)=(P*0.028)/(0.028)`

`\$800=P`

Therefore, the amount of original deposit was $800.