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Simon opened a certificate of deposit with the money from his bonus check. The bank offered 4.5% interest for 3 years of deposit. Simon calculated that he would earn $87.75 interest in that time. How much did Simon deposit to open the account?

Answer 1

Amount deposited by Simon to open the account = #$650#

Assumed Simple Interest #I = (P * N * R)/100# where P - Principal, N - no. of years = 3, R - rate of interest = 4.5% & I - Interest = 87.75

#87.75 = (P * 3 * 4.5)/100#

#P = (87.75 * 100) / (4.5 * 3)#

#P = (cancel(8775) 650) /cancel (4.5 * 3)#

#P = $650#

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Answer from HIX Tutor

When evaluating a one-sided limit, you need to be careful when a quantity is approaching zero since its sign is different depending on which way it is approaching zero from. Let us look at some examples.