Question

John invests a sum of money in a

Answer 1

Answer: 0.000007638035

Step-by-step explanation:

We can use the formula for compound interest to solve this.

Now, the formula goes thus:

A = P ( 1 + r/n)^nt

Where A is the amount compounded, P is the initial amount I.e the principal, r is the rate in % , t is the time while n is the number of times the interest is compounded per time I.e how many times per year.

From the question, we get the following parameters, A = $1912.41 , P = ? , t = 15 years, r = 2.63% and n = 1 of course.

Now, we substitute these into the formula

1912.41 = P ( 1 + 2.63) ^ 15

1912.41 = P ( 3.63) ^ 15

1912.41 = P ( 250,379,850)

P = 1912.41 ÷ 250,379,850

P = 0.000007638035

Looks pretty funny an answer right?