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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?

 Jun 10, 2016
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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

 

 

 

cool cool cool

 Jun 10, 2016

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