Question

A bank is offering 3.5% simple interest on a savings account. If you earned $525 in interest
in 2 years, how much did you deposit in the savings?
O $7,500
O $8,000
O $7.250
$7.000

Answer 1

Answer:

$7500

Step-by-step explanation:

Given

$I = 525$

$R = 3.5\%$

$T =2$

Required

The Principal

This is calculated using:

$I =PRT$

Make P the subject

$P = \frac{I}{RT}$

So, we have:

$P = \frac{525}{3.5\% * 2}$

$P = \frac{525}{7.0\%}$

$P = 7500$