Sara invested money at a bank that paid 3.3% annual interest.compounded quarterly. If she had $6750 at the end of 5 yr, what was her initial investment?

clasicaacyx

clasicaacyx

Answered question

2022-09-24

Sara invested money at a bank that paid 3.3% annual interest.compounded quarterly. If she had $6750 at the end of 5 yr, what was her initial investment?

Answer & Explanation

Gauge Bishop

Gauge Bishop

Beginner2022-09-25Added 3 answers

Solution:
Initial amount = P
Amount A = $6750
Rate r =3.3%
t= 5 years
A = P ( 1 + r n × 100 ) n t 6750 = P ( 1 + 3.3 4 × 100 ) 5 × 4 6750 = P ( 403.3 400 ) 20 6750 = P ( 1.00025 ) 20 6750 = P × ( 1.17859 ) P = 6750 1.17859 P = 5727.18258
Initial amount
P=$ 5727.18

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