Question 1 (1 point)
1 answer:
You might be interested in
The amount deposited initially is $ 706.22
<em><u>Solution:</u></em>
<em><u>The formula for amount using compound interest is given as:</u></em>
Where,
A = the future value of the investment/loan, including interest
P = the principal investment amount (the initial deposit or loan amount)
r = the annual interest rate (decimal)
n = the number of times that interest is compounded per unit t
t = the time the money is invested or borrowed for
From given,
t = 7 years
A = 1000
P = ?
n = 4 (since compounded quarterly)
Substituting the values we get,
Thus amount deposited initially is $ 706.22