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16 July, 11:41

Mr. Drysdale earned $906.25 in interest in one year on money that he had deposited in his local bank. If the bank paid an interest rate of 6.25% APR, how much money did Mr. Drysdale deposit?

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  1. 16 July, 12:04
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    Interest rate: 6.25%; Total amount of interest $906.25.

    Let x be the amount invested so that to get $906.25 as interest gain:

    (x). (6.25%) = 906.25

    x = 906.25/6.25% → x = 906.25/0.0625 and x = $14,500 (deposit amount)
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