Question

Andrea wants to deposit money into a bank account that earns 4% simple interest. use the formula to find the amount of money that she should deposit so that she earns $2800 after 3.5 years. show and explain your work. answer: (score for question 3: ___ of 7 points) solve the equation and write the solution set. answer:

Answer 1

"The formula" is

I = Prt . . . . where I is the interest earned, P is the principal amount, r is the rate, and t is the time period

Andrea wants ...

... 2800 = P×0.04×3.5

... 2800/0.14 = P = 20,000 . . . . . divide by the coefficient of P

Andrea should deposit $20,000 to earn $2800 after 3.5 years.