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?

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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