Question

Mr. jimenez deposited money into an account in which interest is compounded quarterly at a rate of 2.6%. how much did he deposit if the total amount in his account after 4 years was $7160.06, and he made no other deposits or withdrawals? $6455 $6455 $6798 $6798 $6887 $6887 $6977 $6977 skip to navigation

Answer 1

$6455.

Explanation:

The formula for this investment is:

A = P(1 + r/4)^4t where P = amount deposited , A amount after t years,

r = rate (as a decimal fraction).

So we have:

7160.06 = P(1 + 0.026/4)^16

7160.06 = P * 1.109227

P = 7160.06 / 1.109227

= $6455.