Fatima knows that she has about $122 in her bank account. She knows she earned an interest rate of 3 percent, but she doesn't remember how much she opened the account with a year ago. How much did she put in?
A)$4,066.67
B)$118.45
C)$125.66
D)$112.95

Question

Quizplus · Accepted Answer

Fatima's current balance is $122 after earning 3% interest for a year. To find the initial amount, divide the final amount by 1 plus the interest rate (expressed as a decimal). So, $122 / (1 + 0.03) = $118.45.

Fatima Knows That She Has About $122 in Her Bank