Question

Samson opened a bank account with 2.25% simple interest. The total amount of interest Samson will earn after 30 years is $812.50. How much did Samson deposit when he opened the account? Round if necessary.

Answer 1

Answer: The equation for simple interest is:

Future interest = Principal*(interest rate*number of years). Remember to write the interest rate of 1.25% as 0.0125 (rather than directly as 1.25)

812.50 = x(0.0125*20)

812.5 = x(0.25)

x = $3250

This means that Samson deposited $3250 when he opened the account.

Explanation: