Question

Keegan makes a deposit into her savings account at the beginning of the year. The account earns 3% simple interest each year. She has $360.50 in her account at the end of the year. If Keegan did not make any additional deposits or withdrawals during the year, how much did she deposit into the account at the beginning of the year? $10.82 $277.31 $350.00 $371.32

Answer 1

She deposited $350.00 into the account at the beginning of the year.

Answer 2

Answer: Keegan did a deposit of $350.00 at the beginning of the year

Explanation:

Hi, to solve this problem we have to analyze the information given:

• Amount (A) : $360.50

• Interest Rate (r): 3% = 0.03 (decimal)

• Time(t)= 1 year

We have to apply the simple interest formula:

• A = P(1 + rt)

• 360.5= P (1+ 0.03x1 )

Now we have to calculate the value of the principal amount by solving the formula.

• 360.5 = P (1.03)

• 360.5/ 1.03 = P

• P= 350

Keegan did a deposit of $350.00 at the beginning of the year.

Feel free to ask for more if it´s necessary or if you did not understand something.