Chelsea has a savings account that pays 6% annual interest, compounded monthly, and she has made no deposits or withdrawals since opening the account. She receives monthly statements via e-mail, and the statement she just received reported a balance of $800.00. Assuming that she has had the account open for over two months, what was the balance on the previous statement to the nearest cent?

Question

Sabrina Lin

13 September, 18:09

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Answers (1)

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Cheyanne Meyer · Answer 1

X+x*6/100 + x*6/100 = x + 2*x*6/100 = 800 so

1.12*x = 800 so

x = 800/1.12 = 714.285 = (round it) = 714.29 $