Gabrielle opened a savings account 9 years ago. The account earns 13% interest, compounded quarterly. If the current balance is 500.00, how much did she deposit initially?

Solution

Solution

Principal : 158.1

Solution steps

Translate the problem into an equation:

500 = P (1 + \frac{0.13}{4})^{4 \cdot 9}

Solve for

P, 500 = P (1 + \frac{0.13}{4})^{4 \cdot 9} : P = 158.1

Principal : 158.1

Popular Examples

The difference between seven and a number.The product of two consecutive even integers that are positive is 48. Write an equation to find the integers. Let x be the smaller of the two integers.A number decreased by twenty.Kelly opened a savings account 4 years ago. The account earns 10% interest, compounded monthly. If the current balance is 300.00, how much did she deposit initially?Kimi opened a savings account and deposited 1,000.00 as principal. The account earns 14% interest, compounded monthly. What is the balance after 9 years?