A savings account has been earning 1.9% each year for many years. The current value of the account is $165 with no money added or taken out.... What was the value of the account 4 years ago?
What equation should I use?

Question

A savings account has been earning 1.9% each year for many years. The current value of the account is $165 with no money added or taken out.... What was the value of the account 4 years ago?
What equation should I use?

anonymous · Answer

165 + 165*0.019 = next year (168.135)

The equation looks like this:
(Current money in account) + (Current money in account)*(Interest Rate) = Next year

Remember when using percentages you need to convert them to decimal numbers (1%=0.01)

anonymous · Answer

Thank you!!! Your a lifesaver.