Question

Five years ago you deposited a sum of money into a savings account which has earned $150 in interest. The interest rate for the account is 3% simple interest per year. How much money was originally deposited in the account?

Answer 1

Answer:

$1000

Step-by-step explanation:

First, converting R percent to r a decimal

r = R/100 = 3%/100 = 0.03 per year,

then, solving our equation

I = 1000 × 0.03 × 5 = 150

I = $ 150.00

The simple interest accumulated

on a principal of $ 1,000.00

at a rate of 3% per year

for 5 years is $ 150.00.