Question

Devante paid a security deposit of $525 when he signed the lease for his apartment. The money was put into an account earning 2% simple annual interest. After renting for 8 years, Devante got his deposit back. What was the payout balance?

Answer 1

So the formula for simple interest...is

\[I = prt\]

I = interest earned (what we want)
p = original balance
r = rate (decimal)
t = time (in years)

so after plugging in all the numbers we have...we get

\[\large I = 525 \times .02 \times 8\]

This will solve for the amount of interest you have earned....you then add this to the original 525 to get the answer you want...

Hope that helps @rsebren123