Sebastian deposited money into an account in which interest is compounded monthly at a rate of 2.3%

How much did he deposit if the total amount in his account after 5 years was $2123.47

Question

Mathematics

Potter

4 March, 05:21

Sebastian deposited money into an account in which interest is compounded monthly at a rate of 2.3%

How much did he deposit if the total amount in his account after 5 years was $2123.47

+5

Answers (1)

Know the Answer?

Van Lewis · Answer 1

1,895.95

Step-by-step explanation:

Gather info

2.3% compounded annually for 5 yrs for 2123.47

Write formula

A=P (1+Rate) ^t

Substitute info

2123.47=P (1+.023) ^5

Add rate

2123.47=P (1.023) ^5

Solve 1.023^5

2123.47=P1.12

Divide both sides by 1.12

1,895.95=P

Enjoy!

Sebastian deposited money into an account in which interest is compounded monthly at a rate of 2.3%How much did he deposit if the total amount in his account after 5 years was $2123.47

Sebastian deposited money into an account in which interest is compounded monthly at a rate of 2.3%

How much did he deposit if the total amount in his account after 5 years was $2123.47