Question

On the first january 2014 carol invested some money in a bank account the account payes 2.5% compound interest per year on 1st jan 2015 carol withdrew £1000 from the account on 1st jan 2026 sge had £23517.60 in the account work out how much carol originally invested in the account

Answer 1

$23,360

Explanation:

Calculation to determine how much carol originally invested in the account

First step is to divide £23517.60 by 1.025

= (23,517.60)/(1+.025)

= (23,517.60)/1.025

=$22,944

Second step is to add back the $1,000 withdrew

=$22,944+$1,000

=$23,944

Now let calculate how much carol originally invested in the account

$23,944=1.025P

Divide both side by 1.025

P=$23,944/1.025

P=$23,360

Therefore the amount that carol originally invested in the account is $23,360