Question

Jake earned $1.155 in interest from his savings account over the last 5 years. The account has an annual rate of 1.25% how much did jake originally deposit in his account as his principal?

Answer 1

9514 1404 393

Answer:

  $18.48

Step-by-step explanation:

If we assume the account earned simple interest, the amount is given by the formula ...

  I = Prt . . . . interest on principal P at annual rate r for t years

  1.155 = P·0.0125·5

  P = 1.155/0.0625 = 18.48

Jake initially deposited $18.48 as his principal.

_____

Additional comment

The amount $1.155 is an unusual specification for an amount of money. If you mean $1,155.00, then the principal amount is likewise multiplied by 1000: $18,480.