en

English

Español

Português

Français

Deutsch

Italiano

Русский

中文(简体)

한국어

日本語

Tiếng Việt

עברית

العربية

Popular Word Problems >

Reagan opened a savings account 5 years ago. The account earns 1% interest, compounded annually. If the current balance is 200.00, how much did she deposit initially?

Solution

R e a g an o p e n e d a s a v in g s a cco u n t 5 ye a rs a g o . T h e a cco u n t e a r n s 1% in t eres t, co m p o u n d e d ann u a ll y . I f t h e c u rre n t ba l an ce i s 200.00, h o w m u c h d i d s h e d e p os i t ini t ia ll y ?

Solution

Principal : 190.29

Solution steps

Translate the problem into an equation:

200 = P (1 + \frac{0.01}{1})^{1 \cdot 5}

Solve for

P, 200 = P (1 + \frac{0.01}{1})^{1 \cdot 5} : P = 190.29

Principal : 190.29

Popular Examples

Find four consecutive odd numbers whose sum is 64 Michael opened a savings account and deposited 3,000.00. The account earns 1% interest, compounded monthly. If he wants to use the money to buy a new bicycle in 3 years, how much will he be able to spend on the bike?24 less than 4 times a number is 64 A circle has a diameter of 20 cm. a. What part of the circle do you need to find in order to calculate the area inside the circle?Find the future value and interest earned if 8806.54 is invested for 8 years at 6% compounded semiannually