Hanson opened a savings account 6 years ago. The account earns 2% interest, compounded annually. If the current balance is 600.00, how much did he deposit initially?

Solution

Solution

Principal : 532.78

Solution steps

Translate the problem into an equation:

600 = P (1 + \frac{0.02}{1})^{1 \cdot 6}

Solve for

P, 600 = P (1 + \frac{0.02}{1})^{1 \cdot 6} : P = 532.78

Principal : 532.78

Popular Examples

The sum of 8 times a number and 9 is 5 the sum of a positive number and its square is 30. Find the numbers Some number minus 2 is equal to the product of the number and 10.Jim puts 3,527.00 into an account to use for school expenses. The account earns 2% interest, compounded monthly. How much will be in the account after 8 years?If the radius of a sphere is 4.3cm , what is the volume of the sphere to the nearest cubic centimeter?