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Lucy invested for 15 years at 2.8%, compounded annually and ended with an account balance of $2250. What was her initial deposit? Daund to the norost della

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We can write the equation for an anually compound interest as:


FV=PV\cdot(1+r)^n

In this case, we want to calculate the present value, so we rearrange like:


PV=(FV)/((1+r)^n)=(2250)/((1+0.028)^(15))=(2250)/(1.028^(15))\approx(2250)/(1.513)\approx1486.91

Her initial deposit was $1,486.91.

User Jean Noel
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