Problema Solution
2.Bill wants to deposit money into a bank account that earns 4.25% simple interest. Use the formula I=prt to find the amount of money that he should deposit so that he earns $3200 after 4.5 years. Round your answer to the nearest whole dollar. Show and explain your work.
Answer provided by our tutors
I = $3,200
t = 4.5 years
r = 0.0425 the rate as a decimal
P = the money deposited
I = Prt
P*0.0425*4.5 = 3200
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click here to see the equation solved for P
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P = $16,732
Bill should deposit $16,732.