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Margot invests her money in a certificate of deposit that earns 2.5% compounded annually. After 4 years, Margot's investment is worth $640. How much money did Margot invest initially? Round your answer to the nearest cent.

User Shparkison
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2 Answers

6 votes

Answer:

Ordered Pair Verification Solution

getachew tafere

Which ordered pair makes both inequalities true? y≤ -x + 1 y > x

(-3,5)

(-2, 2)

(-1, -3)

(0, -1)

The ordered pair (-1, -3) makes both inequalities true.

getachew tafere

A person deposited $5,000 into a bank account and made no other withdrawals or deposits. Each year, 2.7% interest was added to the account.

Write an exponential function for the situation.

Let y be the amount of money in the bank account after t years, where t >= 0.

The exponential function for this situation is:

y = 5000 * (1 + 0.027)^t

This function models the amount of money in the bank account after t years, given the initial deposit of $5,000 and an annual interest rate of 2.7%.

getachew tafere

Margot invests her money in a certificate of deposit that earns 2.5% compounded annually. After 4 years, Margot's investment is worth $640. How much money did Margot invest initially? Round your answer to the nearest cent.

Let's call the initial amount of money Margot invested as x. We can use the formula for compound interest to find x:

x * (1 + 0.025)^4 = 640

Dividing both sides by (1 + 0.025)^4, we get:

x = 640 / (1 + 0.025)^4

Approximating the expression (1 + 0.025)^4, we get:

x = 640 / 1.103822

x = approximately $580.64

So Margot initially invested approximately $580.64.

Explanation:

User Upswimsdn
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8.3k points
6 votes

Answer: We can use the formula for compound interest to solve this problem:

A = P * (1 + r/n)^(nt)

where:

A = final amount

P = initial amount (what we want to find)

r = annual interest rate as a decimal (2.5% as 0.025)

n = number of times the interest is compounded per year

t = number of years

Plugging in the known values:

640 = P * (1 + 0.025)^(4)

Solving for P:

P = 640 / (1 + 0.025)^(4)

P = $600.28

So Margot invested $600.28 initially.

Explanation:

User VLS
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7.8k points