Question

Simon opened a certificate of deposit with the money from his bonus check. The bank offered 4.5% interest for 3 years of deposit. Simon calculated that he would earn $87.75 in the time. How much did Simon deposit to open the account?

Answer 1

Answer:

$650

Step-by-step explanation:

To find the amount that Simon deposited to get $87.75 in time, we need to use the formula:

$I=Prt$

Let's break down our variables first.

P = ?

r = 4.5% or 0.045

t = 3

I = $87.75

Now let's plug our values into the formula.

$I=Prt$

$87.75=P(0.045*3)$

$87.75=P(0.135)$

To find P we need to divide both sides with 0.135.

$\dfrac{87.75}{0.135}=\dfrac{P(0.135)}{0.135}$

$P=650$

This means the Simon deposited $650 to open the account.