Question

Patel made a deposit into an account that earns 5%simple interest. After 10 years Patel had earned $1500 in interest. How much was Patel’s initial deposit?

Answer 1

Answer:

Patel’s initial deposit was $3000

Step-by-step explanation:

Given:

Simple interest (S.I.) = 5%

Time period (t) = 10 years

Interest earned (r) = $1500

To find: Patel’s initial deposit

Solution:

Simple interest is a method of calculating the interest charged on the principal, or original amount of a loan.

Let p denotes original amount of a loan

$S.I.=\frac{p\times r\times t}{100}\\\Rightarrow 1500=\frac{p\times 5\times 10}{100}\\\Rightarrow p=\frac{1500\times 100}{5\times 10}\\=3000$

So, Patel’s initial deposit was $3000