Part of a table showing the amount of money in Jessica's bank account is given below. The account pays simple interest. She deposited an amount of money at the start and hasn't added or removed any since. a) Work out how much money Jessica deposited in the account. b) Work out the annual interest rate on this account. Give your answer as a percentage (90) to1d.p.

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Part of a table showing the amount of money in Jessica's bank account is given below. The account pays simple interest. She deposited an amount of money at the start and hasn't added or removed any since. a) Work out how much money Jessica deposited in the account. b) Work out the annual interest rate on this account. Give your answer as a percentage (90) to1d.p.

Answer 1

a) The initial deposit Jessica made is \( P \). b) The annual interest rate on the account is \( r \) to 1 d.p.

Answer 2

## Step 1: First, we need to understand the problem. Jessica deposited an amount of money in her bank account and it pays simple interest. We need to find out the initial deposit and the annual interest rate. ## Step 2: Let's assume that the initial deposit (principal) is \( P \) and the annual interest rate is \( r \). The interest earned each year is \( I \). According to the problem, the interest is not compounded, so the formula for simple interest applies: ### \( I = P \cdot r \cdot t \) where \( t \) is the time in years. ## Step 3: We can use the data from the table to create two equations. For example, if the table shows that the amount in the account after one year is \( A_1 \) and after two years is \( A_2 \), we can write: ### \( A_1 = P + P \cdot r \cdot 1 \) ### \( A_2 = P + P \cdot r \cdot 2 \) Subtracting the first equation from the second gives: ### \( A_2 - A_1 = P \cdot r \) We can solve this equation for \( r \) to find the annual interest rate. ## Step 4: Substitute the value of \( r \) into the first equation to find the initial deposit \( P \).

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