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iVinArrow [24]
1 year ago
11

Sophie deposited money into an account in which interest is compoundedsemiannually at a rate of 2.4%. She made no other deposits

or withdrawals and thetotal amount in her account after 11 years was $11,227.78. How much did shedeposit? Round answer to nearest whole number.
Mathematics
1 answer:
meriva1 year ago
6 0

Given

Compounded semiannually

rate = 2.4%

time = 11 years

Future Value = $11,227.78

\begin{gathered} A=P(1+\frac{r}{n})^{nt} \\ \frac{A}{(1+\frac{r}{n})^{nt}}=\frac{P(1+\frac{r}{n})^{nt}}{(1+\frac{r}{n})^{nt}} \\ P=\frac{A}{(1+\frac{r}{n})^{nt}} \\ P=\frac{11227.78}{(1+\frac{0.024}{2})^{2(11)}} \\ P=\frac{11227.78}{1.012^{22}} \\ P=8636.20 \end{gathered}

Rounding to the nearest whole number, the amount the she has deposited is $8636.

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Answer:

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