Samson opened a bank account with 1.25% simple interest. The total amount of interest Samson will earn after 20 years is $812.50.How much did Samson deposit when he opened the account?
Accepted Solution
A:
The equation for simple interest is: Future interest = Principal*(interest rate*number of years). Remember to write the interest rate of 1.25% as 0.0125 (rather than directly as 1.25) 812.50 = x(0.0125*20) 812.5 = x(0.25) x = $3250 This means that Samson deposited $3250 when he opened the account.