Question

Safiya deposited money into a bank account that earned 6.5% simple interest each year. After 3 1/2 years, she had earned $36.40 in interest on the account. If no other money was deposited into or withdrawn from the account, how much was her initial deposit?

Answer 1

We Know, Interest money = P * R * T / 100
Here, I = 36.40, R = 6.5, T = 3.5, P = ?

Substitute their values into the expression,
P = I * 100 / R * T
P = 36.40 * 100 / 6.5 * 3.5
P = 3640 / 22.75
P = 160

So, your final answer is $160

Hope this helps!

Answer 2

The answer is 160.00.