Question

Bert is planning to open a savings account that earns 1.6% simple interest yearly. He wants to earn exactly $224 in interest after 2 years. How much money should he deposit? Can someone help me out I’m kind of struggling

Answer 1

$7000

Explanation:

First, converting R percent to r a decimal

r = R/100 = 1.6%/100 = 0.016 per year,

then, solving our equation

P = 224 / ( 0.016 × 2 ) = 7000

P = $ 7,000.00

The principal required to

accumulate interest of $ 224.00

on a rate of 1.6% per year for 2 years is $ 7,000.00.