Ask Question
24 August, 06:43

2. Over the last ten years, Mary Catherine's original deposit to her savings account at her local branch of the MakesomeMoney Bank has grown to $15,000. If she had invested a single amount, made no additional payments, and earned 6.4 percent compounded annually on her deposit, how much did Mary Catherine deposit?

+5
Answers (1)
  1. 24 August, 08:05
    0
    The deposit was of $4,337.69

    Explanation:

    Giving the following information:

    Final value = 15,000

    Interest rate = 6.4%

    Number of years = 10

    To calculate the original deposit, we need to use a variation of the final value formula:

    FV=PV * (1+i) ^n

    Isolating PV (present value):

    PV = FV / (1+i) ^n

    PV = 15,000 / (1.064) ^10 = $4,337.69
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “2. Over the last ten years, Mary Catherine's original deposit to her savings account at her local branch of the MakesomeMoney Bank has ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers