Question

Howard earned $48 in interest after saving for 3 years at a simple annual interest rate of 2%. How much did Howard originally deposit?

Answer 1

P=i/rt
P=48÷(0.02×3)
P=800

Answer 2

Howard originally deposited $800.

Explanation:

Interest = $48

t = 3 years

r = 2% or 0.02

p = ?

Simple interest formula is :

`I=p* r* t`

Substituting the values in formula, we get;

`48=p*0.02*3`

=>
`48=0.06p`

p = $800

Hence, Howard originally deposited $800.