Question

lesson quiz
3-6
name peyton

1. 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?

812.50
equation represents the total interest, t, ear ed when the principal
e annual simple interest rate is 1%, and th mber of years is 10
. (10 + 0.1) c. t=100•0.1•1

Explanation:

Step1: Recall simple interest formula

The simple interest formula is $I = P \cdot r \cdot t$, where $I$ = interest earned, $P$ = principal (initial deposit), $r$ = annual interest rate (decimal), $t$ = time in years.

Step2: Convert rate to decimal

$r = \frac{1.25\%}{100} = 0.0125$

Step3: Rearrange formula to solve for $P$

$P = \frac{I}{r \cdot t}$

Step4: Substitute given values

$P = \frac{812.50}{0.0125 \cdot 20}$

Step5: Calculate denominator first

$0.0125 \cdot 20 = 0.25$

Step6: Compute final principal

$P = \frac{812.50}{0.25}$

Answer:

$\$3250$