Jerry's savings account earned \( \$ 150 \) after 5 years with a simple interest rate of \( 3 \% \). How much did Jerry deposit on his savings account 5 years ago?

To find out how much Jerry initially deposited, we can use the formula for simple interest: \[ I = P \cdot r \cdot t \] where \( I \) is the interest earned (\$150), \( P \) is the principal amount (the initial deposit), \( r \) is the interest rate (3% or 0.03), and \( t \) is the time in years (5). Rearranging the formula to solve for \( P \): \[ P = \frac{I}{r \cdot t} \] Plugging in the values: \[ P = \frac{150}{0.03 \cdot 5} = \frac{150}{0.15} = 1000 \] So, Jerry deposited **\$1000** in his savings account 5 years ago! If only every investment could be as straightforward as Jerry's savings! The beauty of simple interest is its clarity — you know exactly how much you've earned over time without any compounding surprises. Just keep plugging in those numbers and let the math do the talking!