Question

Ellie opened a savings accounts 6 years ago. the account earns 10% interest, compounded annually. if the current balance is $300.00, how much did she deposit initially?? Round your answer to the nearest cent

Answer 1

$\begin{gathered} 300.000=P(1+0,1)^6 \\ P=\frac{300.000}{(1+0,1)^6} \\ P=169.342 \\ \text{Ellie deposited \ }169.342\text{ initially} \\ A=P(1+i)^t \\ A=\text{FINAL AMOUNT} \\ P=\text{ INITIAL AMOUNT} \\ i=\text{ interest} \\ t=\text{ time. } \end{gathered}$