Question

wyatt opend a savings account 4 years ago. the account earns 4%interest compounded quarterly if the current balance is $1,000.00 how much did he deposit initially round your answer to the nearest cent​

Answer 1

9514 1404 393

Answer:

$852.82

Explanation:

Each quarter the account value is multiplied by 1+(4%/4) = 1.01. After t quarters, the account value is 1.01^t times its initial value.

This same relation works backward in time. For t = -16 quarters (4 years ago), the account value was ...

1000(1.01^-16) ≈ 852.82

Wyatt deposited $852.82.