Marshall opened a savings account 3 years ago. The account earns 2% interest, compounded quarterly. If the current balance is 300.00, how much did he deposit initially?

Solution

Solution

Principal : 282.57

Solution steps

Translate the problem into an equation:

300 = P (1 + \frac{0.02}{4})^{4 \cdot 3}

Solve for

P, 300 = P (1 + \frac{0.02}{4})^{4 \cdot 3} : P = 282.57

Principal : 282.57

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