Answer:
$437.50
Step-by-step explanation:
Let P represent the security deposit.
We have been given that when signing the lease for her new apartment, Tanya paid a security deposit that earned 4% simple annual interest. at the end of a year, the interest earned on the security deposit was $17.50.
[tex]I=Prt[/tex], where,
I = Amount of interest,
P = Principal,
r = Annual interest rate in decimal form,
t = Time in years.
[tex]r=4\%=\frac{4}{100}=0.04[/tex]
[tex]\$17.50=P*0.04*1[/tex]
[tex]\$17.50=P*0.04[/tex]
[tex]\frac{\$17.50}{0.04}=\frac{P*0.04}{0.04}[/tex]
[tex]\$437.50=P[/tex]
Therefore, the security deposit was $437.50.
