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. If no other money was deposited into or withdrawn from the account, how much was his initial deposit?

Answer 1

Answer:

The correct answer is 293$

Hope this helped! :)

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Answer 2

we know that

The simple interest formula is equal to

$I=Prt$

where

P is the Principal amount of money to be invested

I is the amount of money in interest

r is the rate of interest  

t is Number of Time Periods

in this problem we have

$t=2\ years\\ I=\ 14.65\\r=0.025$

substitute in the formula above  and solve for P

$14.65=P(0.025)(2)$

$P=14.65/[(0.025)(2)]$

$P=\ 293$

therefore

the answer is

$\ 293$