Question

When signing the lease for her new apartment, Tanya paid a security deposit that earned 4% simple annual interest. At the end of a year, the interest earned on the security deposit was $17.50. How much was the security deposit?

Answer 1

Answer:

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Step-by-step explanation:

Let P represent the security deposit.

We have been given that when signing the lease for her new apartment, Tanya paid a security deposit that earned 4% simple annual interest. at the end of a year, the interest earned on the security deposit was $17.50.

I=Prt, where

I = Amount of interest,

P = Principal,

r = Annual interest rate in decimal form,

t = Time in years.

r=4%=4/100

=0.04

$17.50=P*0.04*1

$17.50=P*0.04

$17.50/0.04=P*0.04/0.04

$437.50=p

Therefore, the security deposit was $437.50