en

English

Español

Português

Français

Deutsch

Italiano

Русский

中文(简体)

한국어

日本語

Tiếng Việt

עברית

العربية

Popular Word Problems >

Aaron opened a savings account 3 years ago. The account earns 14% interest, compounded monthly. If the current balance is 1,000.00, how much did he deposit initially?

Solution

A a ro n o p e n e d a s a v in g s a cco u n t 3 ye a rs a g o . T h e a cco u n t e a r n s 14% in t eres t, co m p o u n d e d m o n t h l y . I f t h e c u rre n t ba l an ce i s 1, 000.00, h o w m u c h d i d h e d e p os i t ini t ia ll y ?

Solution

Principal : 658.65

Solution steps

Translate the problem into an equation:

1000 = P (1 + \frac{0.14}{12})^{12 \cdot 3}

Solve for

P, 1000 = P (1 + \frac{0.14}{12})^{12 \cdot 3} : P = 658.65

Principal : 658.65

Popular Examples

the quotient of seven and a number is eleven A number x less 6 is 29 I am thinking of 2 numbers. The first number is one more than twice the second number. The sum of the two numbers is 25. What are my two numbers?If the area of a triangle with a base of 12 cm is 42 cm2, what must the height be?You deposit 3500 in an account that pays 2.16% annual interest. Find the balance after 6 years when the interest is compounded quarterly.