Problema Solution
How much would an initial bank deposit need to be in order to earn $1400 at 13% for 7 years? (Round to the nearest dollar.)
Answer provided by our tutors
P = the initial deposit
I = $1400
r = 0.13 or 13%
t = 7 years
Since I = P*r*t we have:
1400 = P*0.13*7
P*0.13*7 = 1400
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click here to see the equation solved for P
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P = $1,538
The initial bank deposit needs to be $1,538.