Question

Gianni deposited money into an account in which interest is compounded monthly at a rate of 4.5%. He made no other deposits or withdrawals and the total amount in his account after 9 months was $1820.30.

How much did he deposit?


$1215


$1225


$1740


$1760

Answer 1

Answer: $ 1760

Step-by-step explanation:

Using the formula for calculating amount :

$A = P(1+r/n)^{n/12}$ , since it is compounded monthly

A = amount

P = principal

r = rate %

n = number of years

substituting into the formula , we have

1820.30 = $P(1+\frac{0.045}{9}) ^{9/12}$

1820.30= P ( $1.005)^{0.75}$

1820.30 = P( 1.)

Therefore:

P = 1820.30 / 1.033747661

P = $ 1760

Answer 2

Answer:

$1760

Step-by-step explanation:

Got it right on the test.