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wariber [46]
3 years ago
9

Rich deposited money into a bank account that earned 2.5% simple interest each year. After 2 years, he had earned $14.65 in inte

rest on the account. If no other money was deposited into or withdrawn from the account, how much was his initial deposit?
Mathematics
1 answer:
Marizza181 [45]3 years ago
7 0
The formula for simple interest is
I=Prt
where I=interest earned, P=initial deposit, r=rate of increase, and t=time.

We have
I=14.65
r=2.5\%=0.025
t=2

Plug in:
14.65=P(0.025)(2)
Solve for P:
14.65=0.05P
\rightarrow P=293

So the initial deposit was $293.
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