Tyler opened a savings account 8 years ago. The account earns 11% interest, compounded monthly. If the current balance is 100.00, how much did he deposit initially?

Solution

Solution

Principal : 41.64

Solution steps

Translate the problem into an equation:

100 = P (1 + \frac{0.11}{12})^{12 \cdot 8}

Solve for

P, 100 = P (1 + \frac{0.11}{12})^{12 \cdot 8} : P = 41.64

Principal : 41.64

Popular Examples

Darren invests 4, 500 into an account that earns 5% annual interest. How much will be in the account after 10 years if the interest rate is compounded daily?The sum of twice a number and 14 less than the number is the same as the difference between-30and the number. What is the number?Jim is 4 years older than Kat. Five years ago, the sum of their ages was 48. How old is Jim?what is the circumference of a circle with a diameter of 14 centimeters Find the principal needed now to get the given amount; that is, find the present value.To get 500 after 2 years at 11% compounded monthly