Bert is planning to open a savings account that earns 1.6% simple interest yearly. He wants to earn exactly $128 in interest after 2 years. How much money should he deposit?
Answers
Answer:
To solve for the Principal amount, we will use the formula:
P = I / rt
P = principal amount; which is the amount that we will be solving for.
I = the interest accrued within the allotted time frame. ($160)
r = the interest rate percentage. (1.6%)
t = the time frame that the money will accrue interest. (2 years)
Before we can plug in the numbers into our formula, we need to convert our percent into a decimal. To do this, move the decimal two places to the left. This will leave us with 0.016. We'll use that for "r".
Let's plug in the numbers:
P = 160 / (0.016) (2)
Multiply your bottom numbers together for 0.016 x 2 =0.032
P = 160 / 0.032
Divide now.
160 ÷ 0.032 = 5,000.
This tells us that, Bert will need to deposit $5,000 into the savings account to earn $160 within 2 years with a 1.6% interest rate.
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Answer:
He should deposit $8000 to get exactly $128 interest after two years.
Step-by-step explanation:
As,
1.6/100 × 8000 = 128
So by depositing $ 8000 he can get $ 128 as interest.