Bert opened a savings account 4 years ago the account earns 13%interest compounded monthly if the current balance is 1,000.00 how much did he deposit initially

Answer :

To answer this question we need to remember the formula:

[tex]A=P(1+\frac{r}{n})^{nt}[/tex]

where r is the interest rate, n is the number of times it is compounded in a given time t.

In this case we know that A=1,000, r=0.13, n=12 and t=13. Plugging this values in the formula and solving for P we have:

[tex]\begin{gathered} 1000=P(1+\frac{0.13}{12})^{12\cdot4} \\ P=\frac{1000}{(1+\frac{0.13}{12})^{12\cdot4}} \\ P=596.19 \end{gathered}[/tex]

Therefore, the initial deposit was $596.19

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