Answer:
$1500
Explanation:
The simple interest I is an amount earned when a principal P is invested at a fixed rate R for a given time T given by the formula
I = PRT/100
The interest is also the difference between the Amount A and the principal.
Given that a bank deposit paying simple interest at the rate of 8%/year grew to $1600 in 10 months
1600 - P = P(8)(10/12)/100
160000 - 100P = 20P/3
480000 - 300P = 20P
320P = 480000
P = $1500
The principal is $1500.
