25. Mike's grandmother opened a savings account in Mike's name and deposited some money into the account. The account pays an annual simple interest rate of 3%. After 9 years, the interest earned on the account was $1,350. How much money did Mike's grandmother deposit in the account?

A. $5,500

B. $6,000

C. $5,000

D. $4,000

Question

25.  Mike's grandmother opened a savings account in Mike's name and deposited some money into the account. The account pays an annual simple interest rate of 3%. After 9 years, the interest earned on the account was $1,350. How much money did Mike's grandmother deposit in the account?  


  A.   $5,500  


  B.   $6,000  


  C.   $5,000  


  D.   $4,000

jim_thompson5910 · Answer

use the formula

I = P*r*t

where

I = interest earned
P = principal (ie amount deposited)
r = interest rate
t = time in years

jim_thompson5910 · Answer

I = P*r*t

1350 = P*0.03*9

solve for P