Your mom opened a college fund for you when you were born. The fund had an annual interest rate of 2.5%. When you turned 18, the account had earned $4,275 in interest. What was the amount your mom deposited when you were born? Use the formula: I = Prt.

Question

Nylah Benjamin

Mathematics

30 April, 03:05

Your mom opened a college fund for you when you were born. The fund had an annual interest rate of 2.5%. When you turned 18, the account had earned $4,275 in interest. What was the amount your mom deposited when you were born? Use the formula: I = Prt.

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Ayers · Answer 1

Given:

Interest = 4,275

interest rate = 2.5%

term = 18 years

Principal = ?

Interest = Principal * interest rate * term

4,275 = P * 2.5% * 18

4,275 / (2.5% * 18) = P

4,275 / 0.45 = P

9,500 = P

Your mom deposited 9,500 when you were born.