Question

How much principle must be deposited to earn $1000 simple interest in 2 years at a rate of 1.3%? Round to the nearest cent. (use the simple interest formula and solve for P)
A:$35,405.21
B:$35,021.03
C:$38,461.54
D:$32,324.52

Answer 1

C.
$38,461.54 must be deposited to earn $1000 in 2 years.