Bert is planning to open a savings account that earns 1.6% simple interest yearly. He wants to earn exactly $128 interest after 2 years. How much money should he deposit?
Pls help me!
0.016x = 64
x = $4,000.
pls explain further so I can understand
You need to earn half of $128 a year. So, you'll need to earn $64 a year.
Let x = the amount of money he should deposit. The account earns 1.6% or 0.016.
Using simple algebra, I set up the equation and solved for x.
0.016x = 64
0.016x/0.016 = 64/0.016
x = $4,000
Does that help?
To find out how much money Bert should deposit, we can use the formula for calculating simple interest:
Interest = Principal * Rate * Time
We know that Bert wants to earn $128 in interest after 2 years, and the interest rate is 1.6%. Let's break down the formula and fill in the given values:
Interest = Principal * 0.016 * 2
Now, we can isolate the Principal variable:
Principal = Interest / (Rate * Time)
Substituting the given values:
Principal = $128 / (0.016 * 2)
Principal = $128 / 0.032
Principal ≈ $4,000
Therefore, Bert should deposit approximately $4,000 into his savings account to earn exactly $128 in interest after 2 years.