Question

Jasmine invested money at the Bank of America. The account has a 2.5%

annual rate. She earned $575 in interest over a 7 year period. How much money did she originally invest?

Answer 1

Answer: This is a compound interest

A=P(1+r)^n

Where A=P+I

P+575=P(1+0.025)^7

P+575=1.1887P

P=3047

Explanation: