Rich deposited money into a bank account that earned 2.5% simple interest each year. after 2 years, he had earned $14.65 in interest on the account.

if no other money was deposited into or withdrawn from the account, how much was his initial deposit?

The simple interest formula allows us to calculate I, which is the interest earned or charged on a loan. According to this formula, the amount of interest is given by I = Prt. We calculate as follows:

14.65 = P (.025)(2) 
P = $293

Hello there.

Rich deposited money into a bank account that earned 2.5% simple interest each year. After 2 years, he had earned $14.65 in interest on the account.

If no other money was deposited into or withdrawn from the account, how much was his initial deposit?

$293