Answer:
Javier's parents set aside $1500 when he was born
Step-by-step explanation:
This is a simple interest problem.
The simple interest formula is given by:
In which E is the interest earned, P is the principal(the initial amount of money), I is the interest rate(yearly, as a decimal) and t is the time.
In this question, we have that:
We have to find P. So
Javier's parents set aside $1500 when he was born
Apparently, the calculator at the link in your lesson is fully capable of giving you the necessary numbers. My own TI-84 work-alike gives me the account balances, but the rest of the numbers need to be figured.
In 30 years, there are 12×30 = 360 months, or 4×30 = 120 quarters. See the calculator results below. Your table can be filled in using the given information to find the contribution amount. The calculator gives the final balance. The interest amount is found by subtracting the contribution amount from the final balance.
