The solution for P is P = A / (1 + r)^t, the initial deposit is $1,510, and I agree that A is always greater than P when given the conditions stated.
<h3>How do we calculate the initial deposit?</h3>
The correct formula in the question is provided as follows:
A = P(1 + r)^t ........................ (1)
a. P can be solved for and the amount of Patricia's initial deposit can be found from equation (1) as follows:
P = A / (1 + r)^t ................................. (2)
Where:
A = $1839.79
r = 2.5% = 0.025
t = 8
Substituting all the relevant values into equation (2), we have:
P = $1839.79 / (1 + 0.025)^8
P = $1,510
b. Yes, I agree.
The reason is that interest at the rate of 2.5% will be earned yearly on P and added to A making A always greater than P.
Learn more about initial deposits here: brainly.com/question/21845455.
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