When signing the lease for her new apartment, Tanya paid a security deposit that earned 4% simple annual interest. At the end of a year, the interest earned on the security deposit was $17.50. How much was the security deposit?

ANSWERS

2015-11-09 04:12:04

The simple interest formula is I=prt Where I the interest earned 17.5 P security deposit ? R interest rate 4%=0.04 T time 1 year 17.5=p×0.04×1 Solve for p 17.5=0.04p Divide both sides by 0.04 to get P=17.5÷0.04 p=437.5 is the amount of security deposit. Hope it helps!

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