Question

Kira had some money sitting in a savings account that earns 2.75% simple interest each year. She left it there for 8 years and earned $495 in interest. How much money did she have in the account to begin with.

Answer 1

$2250

Explanation:

First, converting R percent to r a decimal

r = R/100 = 2.75%/100 = 0.0275 per year,

then, solving our equation

I = 2250 × 0.0275 × 8 = 495

I = $ 495.00

The simple interest accumulated

on a principal of $ 2,250.00

at a rate of 2.75% per year

for 8 years is $ 495.00.