Question

Simon opened a certificate of deposit with the money from his bonus check. The bank offered 4.5% interest for 3 years of deposit. Simon caculated that he would earn $87.75 interest in that time. How much did Simon deposit to open the account?

Answer 1

$650

Explanation:

The for simple interest is

I = Prt Divide each side by rt

P = I/(rt)

= 87.75/(0.045 × 3)

= $650

Simon deposited $650 to open the account.