Question

After 3 years, Brandon has earned $231.00 in interest in a savings account with a simple interest rate of 3.5%. How much did Brandon deposit into the account 3 years ago?

Answer 1

Given:

It is given that Brandon has earned $231.00

And rate of interest =3.5%

Time period = 3 years

To find:

We have to find the amount deposited by Brandon

Solution:

We have the formula $I = Prt$

where, $I$ = Simple intrest amount

           $P$ = Principle amount Deposited

            $r$ = Rate of Interest(in decimals)

            $t$ = Time period

Here in the given problem the known values are

$I$ = 231

$r$ = 3.5% = $\frac{3.5}{100}$ = 0.035

$t$ = 3

Substitite the values in the equation and solve for  $P$

$I = Prt$

231 =  $P$(0.035)(3)

$P=\frac{231}{(3)(0.035)}$

$P=2200$

∴The amount deposited by Brandon = $2200