one christmas, alex took all the money he received as a gift and put it into a savings account. the account earned 5% interest and he left it in the bank for 4 years. if he earned $40 in interest, what was the original price
To solve this problem, we can use the formula for a simple interest:
Interest = Principal * Rate * Time
Let's assume the principal or original amount is "x."
Interest = x * 0.05 * 4
$40 = 0.2x
Now, we can solve for x by dividing both sides of the equation by 0.2:
x = $40 / 0.2
x = $200
Therefore, the original price was $200.