# You can get a savings bond with a 5% annual interest rate. How much money should you put in the savings bond to earn $500 in simple interest in 8 years?

##### 2 Answers

Aug 15, 2017

$1250

#### Explanation:

We know I =

Here, R = 5, I = $500, N = 8 and P = ?

So, 500 =

Aug 15, 2017

#### Explanation:

Using Simple Interest Formula

Where

**Making "P" the subject of formula**

**Imputing the values**