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Today, Kaylee has $769.59 in her savings account. For the last 3 years, her account has paid 8%/a compounded quarterly. Before that, her account paid 7.3%/a compounded quarterly for 2 years. If she only made one deposit 5 years ago, determine the original principle.

 Jan 25, 2022
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PV ==769.59 / [1 + 0.073/4]^(2*4) * [1 + 0.08/4]^(3*4)]

 

PV ==769.59 / 1.4656741 ==$525.08 - original principal 5 years ago.

 Jan 25, 2022

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