Question

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. No other money was deposited into or withdrawn from the account. How much was his initial deposit? Enter your answer in the box. $.

Answer 1

Simple interest formula was used to calculate the principal sum of Rich at the rate of 2.5% for 2 years. Thus Rich's initial deposit was 293 dollars.

What is Simple interest?

Simple interest is based on the principal amount of the loan or initial deposit in the savings account.

$\rm\,I = Prt\\\\where\,I = Interest\,earned\\ \\P = initial\,deposit\\ \\r = rate\,of\,interest\,\\\\\t\,=time$

Following information is given:

$\rm\,I = 14.65\\r= 2.5\% = 0.025\\t=2\\\\\\ Calculate\,P =\\\,14.65 = P\times\,0.025\times\,2\\14.65 = 0.05P\\P= 293$

Hence, Rich's initial deposit was equal to $293.

To learn more about simple interest, refer to the link:

brainly.com/question/25793394