Question

8. Reece made a deposit into an account that earns 8% simple interest. After 8 years, Reece had earned $400. How much was Reece's initial deposit?

Answer 1

`\begin{gathered} P\cdot r\cdot t=I \\ r=0.08 \\ t=8 \\ I=400 \\ \text{from the first equation one has} \\ P=(I)/(r\cdot t) \\ \text{hence} \\ P=(400)/(0.08\cdot8) \\ P=(400)/(0.64) \\ P=625 \end{gathered}`