Question

you deposit money in an account that earns simple interest at an annual rate of 6%. after 8 years, the account earns $360 in interest. how much money did you deposit in the account? $

Explanation:

Step1: Recall simple interest formula

The formula for simple interest is $I = P \times r \times t$, where $I$ is the interest, $P$ is the principal (the amount deposited), $r$ is the annual interest rate (in decimal form), and $t$ is the time in years.

Step2: Convert rate to decimal

The annual rate is 6%, so in decimal form, $r = 0.06$.

Step3: Substitute known values into formula

We know that $I = 360$, $r = 0.06$, and $t = 8$. Substituting these into the formula $I = P \times r \times t$, we get $360 = P \times 0.06 \times 8$.

Step4: Solve for P

First, calculate $0.06 \times 8 = 0.48$. Then the equation becomes $360 = P \times 0.48$. To find $P$, we divide both sides of the equation by 0.48: $P=\frac{360}{0.48}$. Calculating this, we get $P = 750$.

Answer:

750