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Popular Word Problems >

Hannah opened a savings account 10 years ago. The account earns 8% interest, compounded annually. If the current balance is 300.00, how much did she deposit initially?

Solução

H annah o p e n e d a s a v in g s a cco u n t 10 ye a rs a g o . T h e a cco u n t e a r n s 8% 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 300.00, h o w m u c h d i d s h e d e p os i t ini t ia ll y ?

Solução

Principal : 138.96

Passos da solução

Translate the problem into an equation:

300 = P (1 + \frac{0.08}{1})^{1 \cdot 10}

Resolver para

P, 300 = P (1 + \frac{0.08}{1})^{1 \cdot 10} : P = 138.96

Principal : 138.96

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