Question

Bert is planning to open a savings account that earns 1.6% simple interest yearly. He wants to earn exactly $240 in interest after 3 years. How much money should he deposit?

A. $5,000

B. $50

C. $500

D. $3,840

Answer 1

I = PRT
I = 240
R = 1.6% = 0.016
T = 3

now we sub and solve for P, the money he should deposit
240 = P * 0.016 * 3
240 = 0.048P
240 / 0.048 = P
5000 = P <==== ur answer is 5,000