Joshua opened a savings account 11 years ago. The interest rate was 2.9% compounded quarterly. If his balance is currently $1,437.34, how much did he originally deposit into the account?

A. 1,045.97
B. 1,089.72
C. 1,265.39
D. 1,396.83

Question

Joshua opened a savings account 11 years ago. The interest rate was 2.9% compounded quarterly. If his balance is currently $1,437.34, how much did he originally deposit into the account? 

A. 1,045.97
B. 1,089.72
C. 1,265.39
D. 1,396.83

mathstudent55 · Answer

Look up the formula for a future value using compound interest given a present value. Fill in all the given information and solve for the present value.

anonymous · Answer

FV = PV \cdot (1+i)^t
this?

anonymous · Answer

@mathstudent55

mathstudent55 · Answer

Yes, but you need to include compounding more than once per period.
$FV = PV \cdot (1+i)^t$