Question

Samuel deposited money in an account that pays an annual simple interest rate of 3.5%. At the end of 5 years, Samuel earns $2625.00 in interest. How much money had he deposited in the account?

Answer 1

The appropriate interest formula is i = p r t, where i is the interest earned, p is the principal amount and t is the number of years. You know i, r and t, but do not know p. Your job is to calculate p.

p=i/(rt)

Here, p = $2625/(0.035*5)

Please evaluate that to obtain your final answer.