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

A = P [( 1 + ( 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

Answer 2

2471.23 = 1.24 P P = $ 1 992 . 93 approximately