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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. If no other money was deposited into or withdrawn from the account, how much was his initial deposit?

Verified Answer :

bartdrinksmalk

The formula for simple interest is
\(I=Prt\)
where I=interest earned, P=initial deposit, r=rate of increase, and t=time.

We have
\(I=14.65\)
\(r=2.5\%=0.025\)
\(t=2\)

Plug in:
\(14.65=P(0.025)(2)\)
Solve for \(P\):
\(14.65=0.05P\)
\(\rightarrow P=293\)

So the initial deposit was $293.

skybug998

Answer:

the answer is 293

Step-by-step explanation:

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