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