Question

Kerry has an investment account which compounds interest annually at a rate of 4.4%. After 3 years, she has $7080 in the account. How much money did she initially place in the account? Round your answer to the nearest whole number.

Answer 1

Answer:

Denote the original investment of Kerry: A

=> After 3 years, she has $7080 in the account with compounds interest annually at a rate of 4.4%.

=> 7080 = A x (1 + 4.4/100)^3

=> 7080 = A x 1.1379

=> A = 7080/1.1379 = 6221.99 = ~6222$

Hope this helps!

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