Question

Edwin deposited money into a savings account that pays a simple annual interest rate of 1.4%. He

earned $24.50 in interest after 5 years,

How much did he deposit?

O

$122.50

O

$350.00

O $875.00

$1750.00

Next

Answer 1

350.00

Explanation:

Answer 2

The deposited sum of money by Edwin is $350.

Explanation:

Let us assume that the amount deposited = P

The rate of interest = 1.4%

The Simple Interest earned = $24.50

Time = T = 5 years

Now, as we know:

SIMPLE INTEREST =
`(P * R * T)/(100)`

`\implies 24.50 = (P * 1.4 * 5)/(100) \\\implies P = (24.50 * 100)/(1.4 * 5) = 350\\\implies P = 350`

Hence, the deposited sum of money by Edwin is $350.