Question

Bert is planning to open a savings account that earns 1.6% simple interest yearly. He wants to earn exactly $384 in interest after 3 years. How much money should he deposit?
A.
$80
B.
$8,000
C.
$6,144
D.
$800

Answer 1

$~~~~~~ \textit{Simple Interest Earned} \\\\ I = Prt\qquad \begin{cases} I=\textit{interest earned}\dotfill & \ 384\\ P=\textit{original amount deposited}\\ r=rate\to 1.6\%\to \frac{1.6}{100}\dotfill &0.016\\ t=years\dotfill &3 \end{cases} \\\\\\ 384 = P(0.016)(3)\implies \cfrac{384}{(0.016)(3)}=P\implies 8000=P$