1.). Compound Interest Formula: A = P(1 + r/n)^(nt)
2.). Balance: ===> $10,500.00
3.). Time in Years: ===> 2 1 / 4 ===> 9 / 4
4.). Continuous Compound Monthly / Annual Rate: ===> 3.25 %
n is the number of times compounded yearly: A = P ( 1 + r/n )^nt.
r is interest rate as a decimal: ==> r = 3 1/4 %, ==> (12 + 1)/4 %, ==> 13/4 %, ==> 13/400 ===> 0.0325
t is the time in years: ==> t = two and one - quarter years ==> 2 1/4 years ==>
[ {2(4) + 1}/4 ] years ==> [ (8 + 1) / 4 ] years ===> 9/4 years
Solution: Final Amount: $9,760.55, would be the initial investment.
n compounding per year : A = P ( 1 + r/n )^nt.
10,500.00 ===> P ( 1 + 0.0325/12 ) (12) (9/4)
10,500.00 ===> P ( 1.00270833 )^27
10,500.00 ===> P ( 1.075758673 )
(10,500.00) / (1.075758673) ==> P
P ==> 9,760.55 dollars.
Therefore, The initial investment ==> principle ==> $9,760.55 dollars; is your final answer.
Hope that helps!!!! : )