Question

Susan deposited money into a savings account that pays a simple interest rate of 0.5%. She earned $5.00 in interest after 10 years. How much did she deposit?

Answer 1

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Answer:

$100

Explanation:

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

I = Prt

where P is the amount investe, r is the annual rate, and t is the number of years.

Solving for P, we find ...

P = I/(rt) = $5.00/(0.005·10) = $100

Susan deposited $100.