Question

Mia had $500 in her account after 5 years. If she got an

interest rate of 10%, how much money did she
initially deposit? Round your answer to the nearest
penny.

Answer 1

The initial amount in the account is $333.33

Explanation:

Here, we want to calculate the initial amount in the account.

Let the initial amount be $x

Mathematically;

Simple interest = PRT/100

where P is the amount deposited = $x

R is the rate = 10%

T is the time = 5 years

Simple interest = Present amount - Principal = $(500-x)

By substituting;

500-x = (x * 10 * 5)/100

100(500-x) = 50x

50,000 - 100x = 50x

50,000 = 100x + 50x

150x = 50,000

x = 50,000/150

x = 333.33333333

Which to the nearest penny ; x = $333.33