A bank account earns 5% interest each year. No money has been withdrawn or deposited sense the account was opened. Today, 7 years after the account was opened, the balance is $1,336.75.

First question. What would the equation be to calculate the balance in the account after x amount of years from now?
Second question. What was the initial deposit?
Thank you!

Question

A bank account earns 5% interest each year. No money has been withdrawn or deposited sense the account was opened. Today, 7 years after the account was opened, the balance is $1,336.75.

First question. What would the equation be to calculate the balance in the account after x amount of years from now?
Second question. What was the initial deposit?
Thank you!

anonymous · Answer

B=P(1+0.05)^x assuming annual compounding

we  to substitute in what we know:$$1336.75=P(1.05)^7$$
divide 1336.75 by whatever 1.05^7 is

OK?