Posted by **Britney** on Saturday, November 24, 2012 at 2:33pm.

Bernie invested a sum of money 8 yr ago in a savings account, which has since paid interest at the rate of 3%/year, compounded monthly. His investment is now worth $39,396.92. How much did he originally invest?

$ ?

- math -
**Henry**, Saturday, November 24, 2012 at 8:28pm
P = Po(1+r)^n.

P = $39,396.92.

Po = ?.

r = (3%/12) / 100% = 0.0025 = Monthly %

rate expressed as a decimal.

n = 12Comp/yr * 8yrs = 96 Compounding

periods.

P = Po(1.0025)^96 = $39,396.92

Po*1.27087 = 39,396.92

Po = $31,000.00 = Initial deposit.

## Answer this Question

## Related Questions

- finite math - Anthony invested a sum of money 6 yr ago in a savings account that...
- math - A.) start by calculating how long it will take you to save enough money ...
- Algebra - I really need your help in solving this problem. I really appreciate ...
- Math - Mary B deposits $8500 into a savings account, compounded monthly at a ...
- Math - (a) Themba wants to deposit a sum of money into a savings account so that...
- Foundations Math 12 - Forty eight weeks ago, Gabriella invested money at 3.9% ...
- math - The Pirerras are planning to go to Europe 5 yr from now and have agreed ...
- algebra2 - Bill invested $15,000 in three accounts. The savings account paid 1% ...
- algebra2 - Bill invested $15,000 in three accounts. The savings account paid 1% ...
- Math - Nico was stunned when he opened the mail. Here was a check for $322.50! ...