+84 Joshua opened a savings account 11 years ago. The interest rate was 2.9% compounded quarterly. If his balance is currently $1,437.34, how much did he originally deposit into the account?
Joshua opened a savings account 11 years ago. The interest rate was 2.9% compounded quarterly. If his balance is currently $1,437.34, how much did he originally deposit into the account?
PV = FV / [ 1 + R]^N
PV = 1,437.34 / [1 + 0.029/4]^(11*4)
PV =1,437.34 / [ 1.0075]^44
PV =1,437.34 / 1.374169
PV =$1,045.97 What Joshua deposited 11 years ago.
