If I have $500 in my account after 4 years investing at 2.5% per year, how much money did I start with?

Question

Mathematics

Alaina Cowan

8 October, 01:09

If I have $500 in my account after 4 years investing at 2.5% per year, how much money did I start with?

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Answers (1)

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Aubrie · Answer 1

Using the same form as above:

a*1.025^t = 500.

a = 500 / (1.025^t), where t=6 and a is the starting amount.

Thus:

a = 500 / (1.025^6) = 431.148433 = 431.15$