Vanessa deposited money into a bank account that earned 1.25% simple interest each year. After 1/2 year, she had earned $5.00 in interest on the account.

Question

If no other money was deposited into or withdrawn from the account, how much was her initial deposit?

Answer 1

I = PRT

5 = P * 0.0125 * 0.5

Solve for P

Answer 2

800 or 400

Answer 3

the answer is 800