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Rich deposited money into a bank account that earned 2.5% simple interest each year. After 2 years, he had earned $14.65 in interest on the account. If no other money was deposited into or withdrawn from the account, how much was his initial deposit?

Respuesta :

mjdartpage

Answer:

The correct answer is 293$

Hope this helped! :)


^-^


calculista

we know that


The simple interest formula is equal to


[tex]I=Prt[/tex]


where


P is the Principal amount of money to be invested


I is the amount of money in interest

r is the rate of interest  

t is Number of Time Periods


in this problem we have


[tex]t=2\ years\\ I=\$14.65\\r=0.025[/tex]


substitute in the formula above  and solve for P

[tex]14.65=P(0.025)(2)[/tex]

[tex]P=14.65/[(0.025)(2)][/tex]

[tex]P=\$293[/tex]


therefore

the answer is

[tex]\$293[/tex]




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