How much would you need to deposit in an account now in order to have $3,000 
in the account in 5 years? Assume the account earns 2% simple interest.

To determine how much you need to deposit now to have $3,000 in the account in 5 years with a 2% simple interest rate, we use the formula for simple interest:

\[
A = P(1 + rt)
\]

Where:
- $A$ is the future value (amount in the account after 5 years), which is $3,000.
- $P$ is the principal (the amount you need to deposit now).
- $r$ is the annual interest rate, 2% or 0.02 in decimal form.
- $t$ is the time in years, which is 5 years.

We need to solve for $P$. Rearranging the formula to solve for $P$:

\[
P = \frac{A}{1 + rt}
\]

Now substitute the known values:

\[
P = \frac{3000}{1 + (0.02 \times 5)}
\]

\[
P = \frac{3000}{1 + 0.1} = \frac{3000}{1.1}
\]

\[
P = 2727.27
\]

So, you would need to deposit **$2,727.27** now to have $3,000 in the account in 5 years with 2% simple interest.

Would you like more details or have any questions?

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Here are 5 related questions:
1. How much interest would you earn over the 5 years?
2. What would happen if the interest rate increased to 3%?
3. How much would you need to deposit for 10 years instead of 5?
4. What is the difference between simple interest and compound interest?
5. How would the final amount change if you deposited $3,000 now instead?

**Tip:** Always check if the interest is compounded or simple; compound interest grows faster over time.

How much would you need to deposit in an account now in order to have $3,000 in the account in 5 years? Assume the account earns 2% simple interest.

Discover how to calculate the principal amount needed to reach $3,000 in an account in 5 years with 2% simple interest. This solution walks through the use of the simple interest formula and algebraic manipulation, suitable for high school students (Grades 9-12).

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