Answer:
He deposited initially $852.82
Step-by-step explanation:
The rule of the compound interest is , where
- A is the new amount
- P is the initial amount
- r is the rate in decimal
- n is the period of the time
- t is the time
∵ Wyatt opened a savings account 4 years ago
∴ t = 4
∵ The account earns 4% interest compounded quarterly
∴ r = 4% = 4 ÷ 100 = 0.04
∴ n = 4 ⇒ compounded quarterly
∵ The current balance is $1,000.00
∴ A = 1,000
→ Substitute these values in the rule above to find P
∵ 1,000 =
∴ 1,000 =
∴ 1,000 =
→ Divide both sides by
∴ 852.8212622 = P
→ Round it to the nearest cent (2d.p)
∴ P = 852.82
∴ He deposited initially $852.82