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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 If no other money was deposited into or withdrawn from the account, how much was his initial deposit?

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mjdartpage

Answer:

The correct answer is 293$

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calculista

we know that


The simple interest formula is equal to


\(I=Prt\)


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


\(t=2\ years\\ I=\$14.65\\r=0.025\)


substitute in the formula above  and solve for P

\(14.65=P(0.025)(2)\)

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

\(P=\$293\)


therefore

the answer is

\(\$293\)




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