Answer:
The value of his initial deposit was <u>$1,567.15</u>.
Step-by-step explanation:
The value of his initial deposit can be calculated using the formula for calculating present value (PV) as follows:
PV = FV / (1 + r)^n ....................................... (1)
Where;
PV = Present value of the deposit or initial deposit value 9 years ago = ?
FV = Future value or the deposit value today = $2,033.88
r = monthly interest rate = 2.9% / 12 = 0.029 / 12
n = 9 year * 12 months = 108 months
Substituting the values into equation (1), we have:
PV = $2,033.88 / (1 + (0.029 / 12))^108
PV = $2,033.88 / 1.29781895967285
PV = $1,567.15
Therefore, the value of his initial deposit was <u>$1,567.15</u>.
