Question

Gene paid a deposit on a leased car. The deposit earns 2.8 percent simple annual interest. At the end of the year, the interest that is earned is $22.40. What was the amount of the original deposit?

Answer 1

The formula is
I=prt
I interest earned 22.4
P original deposit ?
R interest rate 0.028
T time 1 year
Solve the formula for p to get
P=I÷rt
P=22.4÷(0.028×1)
P=800

Answer 2

Interest = principle * rate * time...
I = PRT...we are going to rearrange this because we are looking for the principle...

I / (RT) = P
I = 22.40
R = 2.8%...turn to a decimal = 0.028
T = 1

sub and solve
22.40 / (0.028(1) = P
22.40 / 0.028 = P
800 = P....amount of original deposit is $ 800 <==