Question

I'm lost, please help, will medal & fan (this isn't my first q)
Scotty invests an amount at 2% interest compounded annually. After 3 years, he has $3183.62.


What was the original amount Scotty invested?



$3000

$2750

$2250

$2500

Answer 1

@Awolflover1

Answer 2

Well first of all, Welcome to OpenStudy!

Answer 3

haha ty I had an account before

Answer 4

Ah :p

Answer 5

So can you help me solve for original value?

Answer 6

The easiest way to figure it out is to plug in the answers to the interest rate formula

Answer 7

Sorry I knew how to do this when I got here, my brain literally forgot what it was thinking :p Ill let @breanna1999 take it :p

Answer 8

lol that is k ok MaddieLB

Answer 9

So I=pr?

Answer 10

or I=prt?

Answer 11

A = P(1 + r)^n

where A is the amount after n years, P is the Principal ( the original amount) and r is the annual rate.

Answer 12

oh ok

Answer 13

so i found that 3000(1.02)^3 = 3183.62

Answer 14

so 3183.62=.... Which is principal again??? =/ ok ty breanna, how do you do that?

Answer 15

you need plug in the given values and solve for P

Answer 16

you have (1 +r) r is the rate which is 0.02

Answer 17

Ok ty guys! Which one of you should I medal...

Answer 18

3183.62 = P ( 1.02)^3
P = 3183.62 / (1.02^^3

Answer 19

OH ok ty welshfella I think I understand now

Answer 20

good