Question

Joe earned $300 on an amount deposited into his bank account for 3 years at a 2% annual simple interest rate.

How much did Joe deposit?
I think its 300

Answer 1

Joe initially deposited $5,000.00

Given:
Interest = 300
Interest rate = 2%
Term = 3 years

Find the initial deposit or the principal.

Simple Interest = Principal * interest rate * term

Principal = Simple interest / (interest rate * term)
Principal = 300 / (2%*3)
Principal = 300 / 0.06
Principal = 5,000

Joe deposited $5,000.00 which earned $300 interest after 3 years at an interest rate of 2%