Asked by yenny
Sara invested money at a bank that paid 3.5% annual interest compounded quarterly. If she had $4650 at the end of 4 yr what was her initial investment?
Answers
Answered by
MathMate
It's the same formula, but finding the answer backwards.
Amount=PR^n
P=principal,
R=interest rate per period
n=number of periods.
Here
A=$4650
n=4years*4 quarters per year
= 16 quarters
R=1+3.5%/4 quarters
=1.00875
So
4650=P*1.00875^16
P=4650/(1.00875^16)
Amount=PR^n
P=principal,
R=interest rate per period
n=number of periods.
Here
A=$4650
n=4years*4 quarters per year
= 16 quarters
R=1+3.5%/4 quarters
=1.00875
So
4650=P*1.00875^16
P=4650/(1.00875^16)
There are no AI answers yet. The ability to request AI answers is coming soon!
Submit Your Answer
We prioritize human answers over AI answers.
If you are human, and you can answer this question, please submit your answer.