Question

Mr. Hall deposited money into an account in which interest is compounded quarterly at a rate of 2.6%. How much did he deposit if the total amount in his account after 4 years was $7160.06, and he made no other deposits or withdrawals?

Answer 1

The formula of this equation would be
`x_(0)`* 1.026^16 = 7,160.06
So from this equation we know that
`x_(0) = (7,160.06)/(1.026^(16) )`
Now we need to find the value of x, we need to multiply
`x_(0)` * 1.026 16 times. Which will bring us to your answer. $4,748.53