Question

How much principal must be deposited in a 5 year simple interest account that pays 4,75% interest to earn $500 in interest

Answer 1

Answer: $2105.26

Explanation:

Concept:

The formula to find simple interest is I=Prt

Given:

t=5 year

r=4.75%

I=$500

Solve:

I=Prt

500=P(4.75%)(5)

100=P(4.75%)

P=$2105.26