Answer: he should deposit $5000
Step-by-step explanation:
The formula for determining simple interest is expressed as
I = PRT/100
Where
I represents interest paid on the amount deposited.
P represents the principal or amount deposited.
R represents interest rate
T represents the duration of the deposit in years.
From the information given,
I = $240
R = 1.6%
T = 3 years
Therefore,
240 = (P × 1.6 × 3)/100
Multiplying both sides by 100, it becomes
240 × 100 = 4.8P
24000 = 4.8P
P = 24000/4.8
P = $5000