Question

Mr. Drysdale earned 906.25 in interest in one year on money that he had deposited in

hix local bank. If the bank paid an interest rate of 6.25%, how much money did Mr.
Drysdale deposit?​

Answer 1

Answer: Mr Drysdale deposited 14,500

Explanation:

Using the simple Interest formula

Simple Interest = Principal(Initial Money) * Interest Rate * Time Period

I = P*R*T

I = PRT

To get P which is the initial money he deposited, we divide both sides by RT

I/RT = PRT/RT

I/RT = P

Therefore the money deposited

P = I/RT

Interest (I)= 906.25

Interest Rate (R)= 6.25% = { converting percentage to decimal} (6.25/100)= 0.0625

Time Period (T) = 1 year

Principal (P)= ?

P= I/RT

P= 906.25/(0.0625 * 1)

P= 906.25/0.0625

P= 1450

The money he deposited in his local bank is 14,500