Question

Penelope withdraws $4,115.23 at the end of a five-year investment yielding 4% interest, compounded annually. How much did Penelope originally deposit

Answer 1

$3,382.42

Step-by-step explanation:

The amount originally deposited by Penelope (PV) can be determined using a Financial calculator as follows :

FV = $4,115.23

PMT = $0

N = 5

I = 4 %

P/YR = 1

PV = ?

The PV is $3,382.42

thus,

Penelope originally deposited $3,382.42