Question

Mr. jimenez deposited money into an account in which interest is compounded quarterly at a rate of 2.6%. how much did he deposit if the total amount in his account after 4 years was $7160.06, and he made no other deposits or withdrawals? $6455 $6455 $6798 $6798 $6887 $6887 $6977 $6977 skip to navigation

Answers

  1. Answer:
    $6455.
    Step-by-step explanation:
    The formula for this investment is:
    A = P(1 + r/4)^4t      where P = amount deposited ,  A amount after t years,
                                    r = rate (as a decimal fraction).
    So we have:
    7160.06 = P(1 + 0.026/4)^16
    7160.06 = P * 1.109227
    P = 7160.06 / 1.109227
      =  $6455.

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