Question

Keegan deposits into her savings account at the beginning of the year. The account earns 3% simple interest each year. She has $360.50 in her account at the end of the year. If Keegan did not make any additional deposits or withdrawals during the year, how much did she deposit into the account at the beginning of the year?

Answer 1

She deposits $350 into the account at the beginning of the year.

Explanation:

Let us assume that Keegan deposits $P into her savings account at the beginning of the year.

The account earns 3% simple interest each year and she has $360.50 in her account at the end of the year.

If Keegan did not make any additional deposits or withdrawals during the year.

So, we can write that
`P[1+(3)/(100) ]= 360.50`

⇒ P = $350 (Answer)