Rich deposited money into a bank account that earned 2.5% simple interest each year. After 2 years, he had earned $14.65 in interest on the account. No other money was deposited into or withdrawn from the account.

How much was his initial deposit?

Enter your answer in the box.

$

Question

Rich deposited money into a bank account that earned 2.5% simple interest each year. After 2 years, he had earned $14.65 in interest on the account. No other money was deposited into or withdrawn from the account.

How much was his initial deposit?

Enter your answer in the box.

$

Vocaloid · Answer

For simple interest:

Interest earned = principal * interest rate as a decimal * time

You have the interest earned (14.65), the interest rate (2.5% or 0.025 as a decimal) and time (2 yrs). Plug in and solve for principal.