Vanessa deposited money into a bank account that earned 1.25% simple interest each year. After 1/2 year, she had earned $5.00 in interest on the account. If no other money was deposited into or withdrawn from the account, how much was her initial deposit

Question

Mathematics

Kaitlyn Wilcox

27 February, 10:15

Vanessa deposited money into a bank account that earned 1.25% simple interest each year. After 1/2 year, she had earned $5.00 in interest on the account. If no other money was deposited into or withdrawn from the account, how much was her initial deposit

+5

Answers (1)

Know the Answer?

Haylie Patterson · Answer 1

In order to figure this out we first have to divide the interest by 2 since it was only half a year.

0.0125 : 2 = 0.00625

We now divide the interest number 5 by 0.00625 to find the initial amount.

5 : 0.00625 = 800

To check this answer, multiply 800 by 0.00625.

800 * 0.00625 = 5