Question

Kelly opened a bank account that earns 1.2% simple interest each year. After 7 years, Kelly will earn $126 in interest. How much did Kelly deposit when she opened the account?

Answer 1

$51

Explanation:

51 x 1.2 = $61.2

61.2 x 1.2 = $73.44

73.44 x 1.2 = $88.13

88.13 x 1.2 = $105.75

105.75 x 1.2 = $126.90