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 Question from RW, a student: If you earned 55.00 for a year in your savings acct. The account pays 0.5 % interest. How much money did you initially have in the savings account.

RW,

I'm not sure if the $55.00 is the amount in your savings account at the end of the year or if it is the amount of interest you earned. I am going to assume it is the interest you earned. I want to convert the statement of this problem into an equation. First of all 0.5% as a fraction is 0.5/100 = 0.005. Suppose the amount initially in the account is$I. So you invested $I for one year at 0.5% interest and the interest you earned was$55.00. Thus

0.005 × $I =$55.00.

Solve for \$I.

Penny

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