Answer:
The amount the business initially invested in 1991 is approximately;
A. $3,450
Step-by-step explanation:
The question relates to investment and finance
The parameters given are;
The annual interest rate on the business savings account = 3%
The amount the business had in the account at the end of 1996 = $4,000
The given formula used to determine the final amount in the savings account,
Where;
F = The final amount
p = The initial (principal) investment
r = The annual interest rate
t = The time in years
Therefore, we have;
The required information = The initial amount, 'p', the business invested in 1991
The time in years, 't', from 1991 to 1996 = 1996 - 1991 = 5
∴ The time in years from 1991 to 1996, t = 5 years
The final amount in 1996, F = $4,000
r = 3%
Plugging in the values in the given equation gives;
Therefore;
To the nearest dollar, the initial amount the business invested in 1991, p ≈ $3,450.