Question

fernando has a savings account balance of $2,471.23. The interest rate on the account is 2.4% compounded quarterly. If he opened the account nine years ago, what was the value of his initial deposit?

Answer 1

Does anyone know the answer to this question?

Answer 2

The formula for a a compounded balance is given by:

\[A=P(1+\frac{ r }{ n })^{nt}\]

P = principal amount (the initial amount you borrow or deposit)
r = annual rate of interest (as a decimal)
t = number of years the amount is deposited or borrowed for.
A = amount of money accumulated after n years, including interest.
n = number of times the interest is compounded per year

You have everything but P, so plug in and then solve for P. Which will give you initial balance.