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You deposit money in an account that earns simple
interest at an annual rate of 6%. After 8
years, the account earns $360 in interest. How much money did you deposit in the account?

Respuesta :

facundo3141592

By writing an exponential equation, we can conclude that the initial deposit is of $606.22

How much money did you deposit in the account?

Here we know that we have an annual rate of 6%, so if you deposit an initial amount of A, the amount of money that the account has after t years is:

M(t) = A*(1 + 6%/100%)^t = A*(1.06)^t

Now, you know that after 8 years you earn (in interest) $360, then we can write:

M(8) - A = 360

A*(1.06)^8 - A = 360

Now we can solve that equation for A.

A*( (1.06)^8 - 1) = 360

A =  360/( (1.06)^8 - 1) = 606.22

The initial deposit is of $606.22

If you want to learn more about exponential equations:

https://brainly.com/question/11832081

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