Question

At Chase Bank, you earned $50 in interest last year. If the interest rate is 4.5% and

your money was in the account for one year, what was your principal deposit, rounded to
the nearest dollar?

Answer 1

$1,111

Explanation:

Let x = principal amount

x multiplied by 1.045 will equal the final amount

Since 50 was earned, x + 50 will also equal the final amount

1.045x = x + 50

Let's move the x terms to left side by subtracting both sides by x

1.045x = x + 50

- x - x

0.045x = 50

Divide both sides by 0.045 to isolate the x variable

0.045x/50 = 50/50

x = 1,111.111111111