Question

Martha has a savings account that pays 1.5% interest annually. She has not made any deposits or withdrawals for many years. Suppose that her current balance is $4,516.32. How much money was in her account 5 years ago? Show how you get your answer.

Answer 1

She had approximately $4,855.07 five years ago because if you were to multiply 1.5%(0.015) with 4,516.32 you'd get 67.75(rounded) and multiply that with five since its five years and she annually has to pay, and you'd get around 338.75. You add that with 4.516.32 which gives you the amount she had five years ago