Question

Rich deposited money into a bank account that earned 2.5% simple interest each year. After 2 years, he had earned $14.65 in interest on the account. If no other money was deposited into or withdrawn from the account, how much was his initial deposit? Enter your answer in the box $_______.

Answer 1

293$

Explanation:

The man before me may have written the formula and answer in a difficult way to read for you. So i just put his answer in.

Answer 2

Simple Interest: A = P(1 + rt); A=Accrued P = Principle r= rate t = time We know Rich earned 14.65 so A=P+14.65 P+14.65=P(1+rt); rate is 2.5% or .025 and t=2 years P+14.65=P(1+(.025)(2)) P+14.65=1.05P 14.65=.05P .05P=14.65 P=14.65/.05 P=293$