Problema Solution

Anthony invested a sum of money 4 yr ago in a savings account that has since paid interest at the rate of 8%/year compounded quarterly. His investment is now worth $49,420.29. How much did he originally invest?

Answer provided by our tutors

A=P(1+r/q0^nq.

49420.29=P(1+0.08/4)^4*4.

49420.29=P*1.3723.

P=49420.29/1.3723.

=$36000.00