Your savings account currently has a balance of $32,300. You opened the savings account two years ago and have not added to the initial amount you deposited. If your savings have been earning an annual interest rate of 2 percent, compounded annually, what was the amount of your original deposit?

Original deposit = $31,045.75

Explanation:

Giving the following information:

Your savings account currently has a balance of $32,300.

You opened the savings account two years ago.

Interest rate = 2 percent, compounded annually

To calculate the original sum we need to use the following formula:

PV = FV / (1+i) ^n

PV = 32,300 / (1.02^2) = $31,045.75