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

Answer 1

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.