Kwang deposits money in an account that earns 5% simple interest . he earned $546 in interest 2 years later . how much did he deposit ?

For simple interest, we first have to get the interest rate for two years. So we will assume that 5% is the interest rate per year. So for two years, his interest rate is 10%. So to get the initial deposit, we can use x as the principal interest. So we can have a formula that goes like this: 0.10x=546. So to solve for x, we just simply divide 546 and 0.10. The answer to that will be 5460. So 2 years ago, Kwang deposited 5460 as the principal amount. 

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