Samuel deposited money in an account that pays an annual simple interest rate of 3.5%. At the end of 5 years, Samuel earns $2625.00 in interest.
The answer is A, $15,000.
The formula for interest earned is Principal x Interest Rate x Number of Periods. Since we know interest earned of $2,625, we have Principal as the unknown. We divide $2,625 by Interest Rate x Number of periods (.035 x 5) and get $15,000.00.
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