Math Problem - need help

Question

The formula A = P(1+r)^t represents the amount of money A in an account after t years, where P is the amount initially deposited and r is the interest rate. Sunyi currently has $1839.79 in an account that is compounded annually, paying an interest rate of 2.5%. She opened the account 8 years ago and has made no addditional deposits since then. SOLVE THE FORMULA for P and find the amount of Sunyi’s initial deposit. 

Answer 1

Hi Nate,

 

A = P(1+r)^t

 

P = A/(1 + r)^t

 

P = 1839.79 /(1.025)⁸

 

P = 1839.79 /1.218

 

P = 1510.50