Question

Patel made a deposit into an account that earns 5%simple interest. After 10 years Patel had earned $1500 in interest. How much was Patel’s initial deposit?

Answer 1

Patel’s initial deposit was $3000

Explanation:

Given:

Simple interest (S.I.) = 5%

Time period (t) = 10 years

Interest earned (r) = $1500

To find: Patel’s initial deposit

Solution:

Simple interest is a method of calculating the interest charged on the principal, or original amount of a loan.

Let p denotes original amount of a loan

`S.I.=(p* r* t)/(100)\\\Rightarrow 1500=(p* 5* 10)/(100)\\\Rightarrow p=(1500* 100)/(5* 10)\\=3000`

So, Patel’s initial deposit was $3000