Question

Jeff invests an amount at 4% interest compounded annually. After 3 year he has 1687.30, What was the original amount jeff invested?

Answer 1

A = P(1+r/n)^(nt)
1,687.30 = P (1+ 0.04/1)^3
1,687.30 = P (1.124864)
P = 1687.30 / 1.124864
P = 1500
answer: $1500 was the original amount jeff invested