Question

Tony’s deposit earned $40.80 in simple over 3 years in an account with an interest rate of 1.7%. How much did Tony deposit?

Answer 1

Tony's deposit was $800.

Explanation:

we know that

The simple interest formula is equal to

`I=P(rt)`

where

I is the Final Interest Value

P is the Principal amount of money to be invested

r is the rate of interest

t is Number of Time Periods

in this problem we have

`t=3\ years\\ I=\$40.80\\r=1.7\%=1.7/100=0.017`

substitute in the formula above

`40.80=P(0.017*3)`

`P=40.80/(0.017*3)`

`P=\$800`