Solve.
-How much would an initial bank deposit need to be in order to earn $2300 at 10% for 8 years? (Round to the nearest dollar.)
A) $29
B) $184,000
C) $1840
D) $2875

Question

Quizplus · Accepted Answer

To find the initial deposit (principal) that would earn $2300 at 10% for 8 years, we use the simple interest formula: Interest = Principal × Rate × Time. Rearranging for Principal gives Principal = Interest / (Rate × Time). Substituting the given values: Principal = $2300 / (0.10 × 8) = $2300 / 0.8 = $2875.

Solve. -How Much Would an Initial Bank Deposit Need to Be