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?

Question

Francis

Mathematics

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?

+4

Answers (1)

Know the Answer?

Tiana Cooke · Answer 1

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)