Asked by Britney
Bernie invested a sum of money 8 yr ago in a savings account, which has since paid interest at the rate of 3%/year, compounded monthly. His investment is now worth $39,396.92. How much did he originally invest?
$ ?
$ ?
Answers
Answered by
Henry
P = Po(1+r)^n.
P = $39,396.92.
Po = ?.
r = (3%/12) / 100% = 0.0025 = Monthly %
rate expressed as a decimal.
n = 12Comp/yr * 8yrs = 96 Compounding
periods.
P = Po(1.0025)^96 = $39,396.92
Po*1.27087 = 39,396.92
Po = $31,000.00 = Initial deposit.
P = $39,396.92.
Po = ?.
r = (3%/12) / 100% = 0.0025 = Monthly %
rate expressed as a decimal.
n = 12Comp/yr * 8yrs = 96 Compounding
periods.
P = Po(1.0025)^96 = $39,396.92
Po*1.27087 = 39,396.92
Po = $31,000.00 = Initial deposit.
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.