SOLUTION: how much money will you need to deposit to earn $75 in simple interest in 6 months if you bank pays 5% annually ?

SOLUTION: how much money will you need to deposit to earn $75 in simple interest in 6 months if you bank pays 5% annually ?

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Question 160255: how much money will you need to deposit to earn $75 in simple interest in 6 months if you bank pays 5% annually ?
Answer by checkley77(12844) (Show Source): You can put this solution on YOUR website!
p(1+r)^t-p=75
p(1+.05/2)^1-p=75
p(1+.025)^1-p=75
p(1.025)-p=75
1.025p-p=75
.025p=75
p=75/.025
p=3,000is the investment amount.
Proof
3000(1+.05/2)^1-3000=75
3000*1.025-3000=75
3075-3000=75
75=75

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