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Zulemia´s grandparents set up an account when she was born. The account earned 4.27% compounded daily. She turned 18 today and she has $32,349.72 in the account. How much money did her grandparents deposit on the day she was born?

Answer: $______

1 Answer

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To calculate the amount of money Zulemia's grandparents deposited on the day she was born, we can use the formula for compound interest:

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

where:

A = the final amount of money in the account ($32,349.72)

P = the principal or initial amount of money deposited

r = the annual interest rate (4.27% or 0.0427)

n = the number of times the interest is compounded per year (365, since the interest is compounded daily)

t = the time the money is invested, in years (18)

Substituting the known values into the formula, we get:

$32,349.72 = P(1 + 0.0427/365)^(365*18)

Simplifying this equation and solving for P, we get:

P = $5,000

Therefore, Zulemia's grandparents deposited $5,000 on the day she was born.