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29 December, 12:01

Sebastian deposited money into an account in which interest is compounded monthly at a rate of 2.3%

How much did he deposit if the total amount in his account after 5 years was $2123.47

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Answers (1)
  1. 29 December, 14:29
    0
    1,895.95

    Step-by-step explanation:

    Gather info

    2.3% compounded annually for 5 yrs for 2123.47

    Write formula

    A=P (1+Rate) ^t

    Substitute info

    2123.47=P (1+.023) ^5

    Add rate

    2123.47=P (1.023) ^5

    Solve 1.023^5

    2123.47=P1.12

    Divide both sides by 1.12

    1,895.95=P

    Enjoy!
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