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 ```A man goes in the bank and set up an account with a 9.5% annual interest. At the end of the year, his account has earned \$475.00. What was the amount he originally deposit?``` Request for Question Clarification by omnivorous-ga on 08 Nov 2002 07:44 PST ```Cindy -- This simple question is actually unanswerable until the researcher knows when the interest compounds. Is it daily? Monthly? Quarterly? Annually? Best regards, Omnivorous-GA```
 ```Hello cindyb I note what omnivorous says but since your question states that the interest has 9.5% annual interest, I would take it at face value that the interest is paid annually. Therefore in order to work out the figure we need to know what figure \$475.00 is actually 9.5% of. \$475 divided by 9.5% = \$5000.00. \$5000.00 was the initial sum invested Working out *********** 9.5% = 0.095, i.e. 9.5 divided by 100. 475 divided by 0.095 = 5000 Checking ******** If we invested \$5000.00 in an account with 9.5% annual interest, what interest would we have after one year. \$5000 * 0.095 = \$475.00 I hope this is sufficient and helps you to understand the workings out for future questions of this nature. Johnny Phoenix```