Answer:
$5151.42
Step-by-step explanation:
The formula you need is
where A(t) is the amount after the compounding, P is the initial investment, r is the interest rate in decimal form, n is the number of compoundings per year, and t is time in years. The info we have is
A(t) = 8000
P = ?
r = .09
t = 5
Filling in we have
Simplifying a bit and we have
Now we will add inside the parenthesis and raise 1.045 to the 10th power to get
8000 = P(1.552969422)
Divide away the 155... on both sides to solve for P.
P = $5151.42