Vanessa deposited money into a bank account that earned 1.25% simple interest each year. After 1212 year, she had earned $5.00 in interest on the account.
If no other money was deposited into or withdrawn from the account, how much was her initial deposit?
why it aint no answer confused
1212 year?
To find out how much Vanessa's initial deposit was, we can use the formula for simple interest:
Interest = Principal x Interest Rate x Time
Given that Vanessa earned $5.00 in interest after 1.25% simple interest each year for 12 years, we can substitute the known values into the formula:
$5.00 = Principal x 1.25% x 12
To solve for the Principal (initial deposit), we need to isolate it.
First, convert the interest rate to decimal form:
1.25% = 1.25/100 = 0.0125
Next, divide both sides of the equation by 0.0125:
$5.00 / 0.0125 = Principal x 12
Simplifying:
$400 = Principal x 12
Now, divide both sides by 12 to solve for the Principal:
$400 / 12 = Principal
The initial deposit, or Principal, is $33.33.
To find the initial deposit, we can use the formula for simple interest:
Simple Interest = Principal × Rate × Time
Let's use the given information to solve the problem.
We know that the interest earned after 12 years is $5.00.
Substituting the given values into the formula, we get:
$5.00 = Principal × 1.25% × 12
First, let's convert the interest rate from a percentage to a decimal by dividing it by 100:
1.25% = 0.0125
Now, let's rewrite the equation:
$5.00 = Principal × 0.0125 × 12
Now, we can solve for the Principal:
$5.00 = Principal × 0.15
Divide both sides of the equation by 0.15:
Principal = $5.00 / 0.15
Principal ≈ $33.33
Therefore, Vanessa's initial deposit was approximately $33.33.