Question

How much would I have to deposit into my savings account today in order to have $1600 in 3 years if the account earns 5% simple interest annually?

Answer 1

he rate of interest is usually expressed as a percent per year, and is ... If we rounded to 20%, the interest would have been 500(0.20) or $100. ... Find the principal invested if $495 interest was earned in 3 years at