After 8 years, Greg's account earned $1800 in interest. If the interest rate (in decimal form) is 0.08, how much did Greg initially invest?
We can solve this equation [ assuming yearly compounding ]
P + 1800 = P (1 + .08)^8 where P is the amount originally invested
Rearrange as
1800 = P [ (1 + .08)^8 - 1] divide both sides by [ (1 + .08)^8 - 1]
1800 / [ (1 + .08)^8 - 1] = P = about $2115.38