Question

Debbie invested money in an account which pays 5% annual interest. After one year she had earned $102 interest. How much money did she invest

Answer 1

Explanation:

A = P(1 + r)^t

(P + $102) = P[1 + (0.05)]^(1)

P + $102 = 1.05P

0.05P = $102

P = $2,040.

Hence Debbie invested $2,040.