143k views
2 votes
Sussy earned $32.45 in interest. the interest was set at 5% for 6 months. How much money did she deposited initially?

1 Answer

5 votes

Answer: Sussy initially deposited $31.61.

Step-by-step explanation: 5% interest rate for 6 months with $32.45 earned, we can use the compound interest formula A=P(1 + r/n)^nt where A is the final amount, P is the principal amount, r is the annual interest rate, n is the number of times that interest is compounded per year and t is the time in years.

In this case, we know that P is what we are looking for, r=5%, n=2 (since it’s compounded twice a year), t=6/12=0.5 years and A=P+$32.45.

Substituting these values into the formula gives us:

A=P(1 + r/n)^nt + $32.45

$32.45=P(1 + 0.05/2)^(2*0.5)

$32.45=P(1 + 0.025)^1

$32.45=P(1.025)

P=$31.61

User Thomasstephn
by
8.7k points

Related questions

asked May 12, 2024 47.7k views
Chana asked May 12, 2024
by Chana
8.7k points
2 answers
0 votes
47.7k views
2 answers
0 votes
165k views
asked Nov 4, 2022 130k views
Emiel Koning asked Nov 4, 2022
by Emiel Koning
7.5k points
2 answers
3 votes
130k views