Question

Ivy deposited some money into a savings account that earns 1%

annual simple interest. At the end of 5 years, she earned $32.50 in
interest. How much money did she put into the account initially?
Round to the nearest dollar.

Answer 1

Ivy initially put $ 650 in the account.

Explanation:

Given that Ivy deposited some money into a savings account that earns 1% annual simple interest, and at the end of 5 years, she earned $ 32.50 in interest, to determine how much money did she put into the account initially, the following calculation must be performed:

32.50 / 5 = 6.5

1 = 6.5

100 = X

100 x 6.5 = X

650 = X

Therefore, Ivy initially put $ 650 in the account.