Question

Naomi opened a savings account 7 years ago. the account earns 8% interest compounded monthly if the current balance is 1,000.00 how much did she despoit initially

Answer 1

`\begin{gathered} \text{ principal=?} \\ A=1000 \\ \text{rate}=8\text{ \%=}(8)/(100)=0.08 \\ t=7 \\ P=(A)/((1+(r)/(n))^(nt)) \\ P=(1000)/((1+(0.08)/(12))^(12*7)) \\ P=(1000)/(1.74742205143) \\ P=572.271592419 \\ P=\text{ \$}572.27 \end{gathered}`