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Ryan invests a sum of money in a savings account with a fixed annual interest rate of 4.31% compounded 12 times per year. After 10 years, the balance reaches $12,855.94. What was the amount of the initial investment?

Respuesta :

vickaury899
12855.94 = (1 + .0431/12) 12(10)
8361 = P Hope this helps!
abiolataiwo2015

Based on the information given the amount of the initial investment is $8,361.

Let P represent the amount of the initial investment

Hence,

12855.94 = P(1 + .0431/12) ^12(10)

12,855.94=P(1+0.0035917)^120

12,855.94=P(1.0035917)^120

12,855.94=P(1.53760782)

P=12,855.94/1.53760782

P=$8,360.8

P=$8,361 (Approximately)

Inconclusion the amount of the initial investment is $8,361.

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