Gene paid a deposit on a leased car. The deposit earns 2.8 percent simple annual interest. At the end of the year, the interest that is earned is $22.40. What was the amount of the original deposit?

Question

Annabelle

Mathematics

25 November, 02:32

Gene paid a deposit on a leased car. The deposit earns 2.8 percent simple annual interest. At the end of the year, the interest that is earned is $22.40. What was the amount of the original deposit?

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Answers (2)

Know the Answer?

Summer Palmer · Answer 1

The formula is

I=prt

I interest earned 22.4

P original deposit?

R interest rate 0.028

T time 1 year

Solve the formula for p to get

P=I:rt

P=22.4: (0.028*1)

P=800

Ebony · Answer 2

Interest = principle * rate * time ...

I = PRT ... we are going to rearrange this because we are looking for the principle ...

I / (RT) = P

I = 22.40

R = 2.8% ... turn to a decimal = 0.028

T = 1

sub and solve

22.40 / (0.028 (1) = P

22.40 / 0.028 = P

800 = P ... amount of original deposit is $ 800 <==