Question

Bert is planning to open a savings account that earns 1.6% simple interest yearly. He wants to earn exactly $96 in interest after 2 years. How much money should he deposit?

A $300
B $3,000
C $1,536
D $30

Medal Given! Please Help!

Answer 1

Simple interest is
P x I x N

Where
P = principle amount deposited
I = interest rate
N = duration / number of interest periods

So, we know
I = 1.6 % yearly
N = 2 years

First convert 1.6 % to a non-percent. To do that we just /100.
so 1.6/100 = 0.016

So now we have
P x 0.016 x 2

Solve for P

Answer 2

Sorry, I missed something. It should be 96 = P x 0.016 x 2.

Answer 3

okay thanks @PsychoTink