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?

7,000

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.