Question

A bank is offering 3.5% simple interest on a savings account. If you earned $525 in interest

in 2 years, how much did you deposit in the savings?
O $7,500
O $8,000
O $7.250
$7.000

Answer 1

$7500

Explanation:

Given

`I = 525`

`R = 3.5\%`

`T =2`

Required

The Principal

This is calculated using:

`I =PRT`

Make P the subject

`P = (I)/(RT)`

So, we have:

`P = (525)/(3.5\% * 2)`

`P = (525)/(7.0\%)`

`P = 7500`