Pierce currently has $10,000. what was the value of his money five years ago if he has earned 5 percent interest each year?

Question

Jakayla Gamble

Mathematics

31 July, 15:34

Pierce currently has $10,000. what was the value of his money five years ago if he has earned 5 percent interest each year?

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Answers (1)

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Abdiel Oconnor · Answer 1

Based on the given problem above, here is the solution:

Given: $10,000 = current amount

5% = interest each year

? = amount or value of money 5 years ago

So first, we are going to find 5% of $10, 000. 10,000 x 0.05 would be 500.

So each year, Pierce's money increases $500. In order to know how much money she had five years ago, we multiply $500 by 5. The answer would be $2500. Next, $10,000 - $2,500 = $7,500. So five years ago, the value of his money was $7,500.