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Lukecrayonz

  • 2 years ago

Ralph has an account balance of $608.93 in a savings account that earns interest at a rate of 3.5% compounded daily. If Ralph opened the account nine years ago, what was the principal deposit rounded to the nearest dollar? $464 $589 $603 $444

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  1. Lukecrayonz
    • 2 years ago
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    @ganeshie8

  2. ganeshie8
    • 2 years ago
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    this is not as hard as the previous problem

  3. ganeshie8
    • 2 years ago
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    lets say, x is the principal deposit 9 years back. then, x has grown to 608.93 in 9 years compounding daily at a rate of 3.5 %

  4. ganeshie8
    • 2 years ago
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    use your compound interest formula :- \(x(1 + .035/365)^{365*9} = 608.93\) solve x

  5. ganeshie8
    • 2 years ago
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    you need to use calculator to find x

  6. Lukecrayonz
    • 2 years ago
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    444!

  7. ganeshie8
    • 2 years ago
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    perfect ! http://www.wolframalpha.com/input/?i=x%281%2B.035%2F365%29%5E%28365*9%29+%3D+608.93

  8. Lukecrayonz
    • 2 years ago
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    I'll make new posts for each question @ganeshie8

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