Question

You deposit $700 in a bank account for 2 years that earns a 3% simple interest. How much interest is earned on the account?

Answer 1

700
+3
703
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Answer 2

You deposit some money into a bank account paying 4% simple interest per year. You received $72 in interest after 3 years. How much the deposit (principal) was?

Result:

The principal was $600.

Explanation

Find principal by using the formula , where I is interest, P is total principal, i is rate of interest per year, and t is total time in years.

In this example I = $72, i = 4% and t = 3 years, so

Explanation: