Question 1079272
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The other tutor who responded has a habit of supplying answers without checking to see if they are correct.  A simple arithmetic error in her response leads to an incorrect answer.<br>
The interest rate decreased by 1/4 of 1 percent, resulting in a decrease of $50 in interest.<br>
A decrease of 1/4 of 1 percent resulting in a decrease of $50 in interest means that a decrease of 1 percent would result in a decrease of 4($50) = $200; that means the amount invested was 100($200) = $20,000.<br>
ANSWER: $20,000<br>