Question

smith deposited some money in a saving account at 12% annual rate of interest . what was his deposit if he has $2800 in the account after one year ?

Answer 1

Answer:

$2500

Step-by-step explanation:

We know that interest is given by

I = $\frac{P*R*T}{100}$     -- equ1

Also P = total amount - Interest

so P = 2800 - I  --equ2

so now solving equ1 and equ2

∴ I = $\frac{(2800 - I)*12*1}{100}$

∴ 100I = 33600 - 12I

∴ 112I = 33600

∴ I = 300

Now using equ2

∴ P = 2800 - 300

∴ P = $2500