If Rita receives $36.04 interest for a deposit earning 5% simple interest for 120 days, what is the amount of her deposit?
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In this case, we know the interest (I) is $36.04, the rate (R) is 5% (or 0.05 when expressed as a decimal), and the time (T) is 120 days. However, since the rate is usually calculated on an annual basis, we need to convert the time to years. There are 365 days in Show more…
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