After saving money for 3 years at a 5% interest rate compounded monthly, Henry accumulated a total of 2800. How much money did he put into the bank when he started the savings plan?

Solution

Solution

Amount : 3252.12

Solution steps

Translate the problem into an equation:

A = 2800 (1 + \frac{0.05}{12})^{12 \cdot 3}

2800 (1 + \frac{0.05}{12})^{12 \cdot 3} = 3252.12224 \dots

Round to the nearest hundredth:

3252.12

Amount : 3252.12

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