Answer:
His initial deposit is $2222.2
Step-by-step explanation:
To find the amount deposited, we will simply use the formula for calculating simple interest.
Simple Interest = [tex]\frac{P X R XT}{100}[/tex]
Where p = principal
R= Rate
T= Time
Principal is the initial amount deposited which we are ask to find.
R is given to be 6% and T is the time which is given in years
Simple interest is the interest earned over the year which is given to be $400
Lets substitute our variable into the equation
Simple Interest = [tex]\frac{P X R XT}{100}[/tex]
$400 = P × 6 × 3 / 100
$400 = [tex]\frac{18 P}{100}[/tex]
We will then cross multiply
$40 000 = 18 P
To get the value of P, we divide both-side of the equation by 18
[tex]\frac{40 000}{18}[/tex] = [tex]\frac{18 P}{18}[/tex]
$2222.22 = P
P = $2222.22
Joey's initial deposit is $2222.22
