Answer: 2884.62 dollars
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How to get that answer:
Because Sheila is dealing with simple interest, the formula to use is
A = P*(1+r*t)
where,
- A = final amount
- P = amount to deposit (aka principal)
- r = annual interest rate in decimal form
- t = number of years
In this case,
- A = 3000
- P = unknown
- r = 0.08
- t = 6/12 = 0.5 (since 6 months is half a year)
So,
A = P*(1+r*t)
3000 = P*(1+0.08*0.5)
3000 = P*(1+0.04)
3000 = P*(1.04)
3000/(1.04) = P
2884.61538 = P
P = 2884.61538
P = 2884.62
We round to the nearest cent, aka nearest hundredth.
Sheila needs to deposit $2,884.62
