Answer: $500
Step-by-step explanation:
The formula to calculate the simple interest is given by :-
[tex]I=Prt[/tex] , where P is the principal amount, r is the rate of interest ( in decimal ) and t is the time period ( in years).
Given : I= $100 ; t= 4 years ; r= 5%=0.05
Substitute all the values in the above formula , we get
[tex]100=P(0.05)(4)\\\\\Rightarrow\ P=\dfrac{100}{(0.05)(4)}\\\\=\dfrac{100}{0.2}=\dfrac{1000}{2}=500[/tex]
Hence, Adam have to deposit $500.
