Question

Peter made a deposit into an account that earns 6% simple interest.Peter earned $500 after four years.How much was his initial deposit?

Answer 1

$120

Explanation:

Formula of simple interest: I = P x R x T / 100

P (investment) = $500

R (rate) = 6%

T (time) = 4 years

500 x 6 x 4 = 12000 / 100

I = $120