Asked by Ham

Andrea wants to deposit money into a bank account that earns 2.5% simple interest. Use the formula to find the amount of money that she should deposit so that she earns $2500 after 4.5 years. Show and explain your work.

Answers

Answered by Ms. Sue
I = PRT

2500 = P * 0.025 * 4.5

2500 = 0.1125P

22,222.25 = P
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