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

Answer:

it would be 800 because 2.8% of 800 is 22.40 and that is your answer.

hope i helped :)

Answer 2

Answer:

$800.

Step-by-step explanation:

We have been given that Gene's deposit earns 2.8 percent simple annual interest. At the end of the year, the interest that is earned is $22.40. We are asked to find the amount of original deposit.

To find the original amount of deposit, we use simple interest formula:

$I=Prt$, where,

I = Amount of interest,

P = Principal amount,

r = Annual interest rate in decimal form,

t = Time in years.

Let us convert our given interest rate in decimal form.

$2.8\%=\frac{2.8}{100}=0.028$

Upon substituting our given values in above formula, we will get:

$\ 22.40=P*0.028*1$

$\ 22.40=P*0.028$

$\frac{\ 22.40}{0.028}=\frac{P*0.028}{0.028}$

$\ 800=P$

Therefore, the amount of original deposit was $800.