Jermy deposited money into a savings account that pays a simple annual interest rate of 1.6%. He earned 55.04 in interest after 4 years. How much did he deposit?.
860
1376
2976
3440
$860 is the principal amount. Therefore, choice A is right.
Simple interest rate is 1.6 percent.
$55.04 after simple interest.
t = 4 years
We must ascertain the principal sum.
Simple interest
The formula for simple interest is: pxrxI 100 Substitute the given values. D x 1.6x 4 55.04 100 5504 = 6.4p 5504 6.4 860 = 0 The principal value is $860. So, option A is correct.
