Bert is planning to open a savings account that earns 1.6% simple interest yearly. He wants to earn exactly $240 in interest after 3 years. How much money should he deposit?

Answer: he should deposit $5000

Step-by-step explanation:

The formula for determining simple interest is expressed as

I = PRT/100

Where

I represents interest paid on the amount deposited.

P represents the principal or amount deposited.

R represents interest rate

T represents the duration of the deposit in years.

From the information given,

I = $240

R = 1.6%

T = 3 years

Therefore,

240 = (P * 1.6 * 3) / 100

Multiplying both sides by 100, it becomes

240 * 100 = 4.8P

24000 = 4.8P

P = 24000/4.8

P = $5000