Question

Nat opened an account that earns 1.4% simple annual interest. He will earn $21 total interest after 3 years. How much did he deposit when he opened the account?

Answer 1

Answer:

Therefore Nat deposited $500 when he opened the account.

Step-by-step explanation:

Given that Nat opened an account that earns 1.4% simple annual interest. He will earn $21 total interest after t years.

The simple interest formula is

$I= Prt$

I= interest= $21

P= Principal=?

t= time in year= 3 years.

r = rate of interest= 1.4%= 0.014

$I= Prt$

$\Rightarrow P=\frac{I}{rt}$

       $=\frac{21}{0.014\times 3}$

       =$500

Therefore Nat deposited $500 when he opened the account.