Question

Lola opened a savings account 6 years ago. the account earns 15%interest compounded quarterly. if the current balance is 200.00 how much did she despoit initially round your answer to the nearest cent

Answer 1

In this case, we'll have to carry out several steps to find the solution.

Step 01:

Data

interest = 15% = 0.15

n = time = 6 years

M = final capital = $200

C = initial capital = ?

Step 02:

M = C (1 + i) ^ n

M = C (1 + i/4) ^ n

`200=C(1+0.15/4)^6`

200 = C * 1.2472

200 / 1.2472 = C

160.3592 = C

The answer is:

Lola initially deposited the amount of $160.359.