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Simon opened a certificate of deposit with the money from his bonus check. The bank offered 4.5% interest for 3 years of deposit. Simon calculated that he would earn $87.75 in the time. How much did Simon deposit to open the account?

Respuesta :

DizzyBerco

Answer:

$650

Step-by-step explanation:

To find the amount that Simon deposited to get $87.75 in time, we need to use the formula:

[tex]I=Prt[/tex]

Let's break down our variables first.

P = ?

r = 4.5% or 0.045

t = 3

I = $87.75

Now let's plug our values into the formula.

[tex]I=Prt[/tex]

[tex]87.75=P(0.045*3)[/tex]

[tex]87.75=P(0.135)[/tex]

To find P we need to divide both sides with 0.135.

[tex]\dfrac{87.75}{0.135}=\dfrac{P(0.135)}{0.135}[/tex]

[tex]P=650[/tex]

This means the Simon deposited $650 to open the account.