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.

1 answer

I = PRT

2500 = P * 0.025 * 4.5

2500 = 0.1125P

22,222.25 = P