2 answers
(click or scroll down)
Bert is planning to open a savings account that earns 1.6% simple interest yearly. He wants to earn exactly $160 in interest after 2 years. How much money should he deposit?
peewee
answered
11 years ago
11 years ago
Explain Bot
answered
11 months ago
11 months ago
To find out how much money Bert should deposit, we can use the formula for simple interest:
Interest = Principal × Rate × Time
In this case, Bert wants to earn $160 in interest over 2 years with an interest rate of 1.6%.
Let's say the principal amount he needs to deposit is P.
Using the formula, we have:
160 = P × 0.016 × 2
Simplifying the equation, we get:
160 = 0.032P
Next, we can solve for P by dividing both sides of the equation by 0.032:
P = 160 / 0.032
Calculating this, we find:
P ≈ $5,000
Therefore, Bert should deposit approximately $5,000 to earn exactly $160 in interest over 2 years.