27.8k views
11 votes
Aiden earned $50 in interest in six

months. If his savings account has a
rate of 5%, how much did Aiden
start with in his account?

2 Answers

12 votes
$2000
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User Ted Feng
by
5.3k points
11 votes

9514 1404 393

Answer:

$2000

Explanation:

The amount of interest is given by the formula ...

I = Prt

where P is the principal invested, r is the annual rate, and t is the number of years. Here, we want to find P when I = 50, r = 0.05, and t = 1/2.

50 = P(0.05)(1/2)

P = 50/(0.05ยท1/2) = 2000

Alden started with $2000 in his account.

User Rohit Nishad
by
4.8k points