RM X was deposited in a savings account at 4% interest compounded monthly. Forty months later, RM 4200 was withdrawn from the account and the balance was RM 4212.39. Find the value of X.

Question

RM X was deposited in a savings account at 4% interest compounded monthly. Forty months later, RM 4200 was withdrawn from the account and the balance was RM 4212.39. Find the value of X.

Answer 1

x(1 + .04/12)^40 - 4200 = 4212.39

Now just solve for x

Answer 2

To find the value of X, we need to work backwards from the final balance of RM 4212.39 to the original deposit.

First, let's find the value of the account after 40 months of compounding interest.

Using the formula for compound interest:

A = P(1 + r/n)^(nt)

Where:
A = Final balance after t years
P = Principal amount (initial deposit)
r = Annual interest rate (in decimal form)
n = Number of times interest is compounded per year
t = Number of years

In this case,
A = RM 4212.39
r = 4% = 0.04 (in decimal form)
n = 12 (compounded monthly)
t = 40/12 = 3.33...

Using the formula:

4212.39 = P(1 + 0.04/12)^(12*3.33)

Next, we can solve the equation for P:

P = 4212.39 / (1 + 0.04/12)^(12*3.33)

P ≈ RM 4098.62

Now, we need to work backward to find the original deposit (X).

Since RM 4200 was withdrawn from the account after 40 months, the original deposit was:

X = P + RM 4200
X = RM 4098.62 + RM 4200
X = RM 8298.62

Therefore, the value of X is approximately RM 8298.62.

Answer 3

To find the value of X, we need to use the formula for compound interest:

A = P(1 + r/n)^(nt)

Where:
A = final amount
P = principal amount (initial deposit)
r = annual interest rate (as a decimal)
n = number of times interest is compounded per year
t = number of years

In this case, the principal amount is X, the annual interest rate is 4% (or 0.04 as a decimal), and the interest is compounded monthly, so n is 12.

Now, let's break down the information given in the problem:

Given: Forty months later, RM 4200 was withdrawn from the account and the balance was RM 4212.39.

We know that after 40 months, the remaining balance is RM 4212.39, meaning the final amount (A) is RM 4212.39.

We also know that RM 4200 was withdrawn from the account, so the final balance before the withdrawal was RM 4212.39 + RM 4200 = RM 8412.39.

Now, let's substitute the values into the formula and solve for X:

8412.39 = X(1 + 0.04/12)^(12*40)

To solve this equation, we can divide both sides by (1 + 0.04/12)^(12*40) to isolate X:

X = 8412.39 / (1 + 0.04/12)^(12*40)

Calculating the right side of the equation will give us the value of X.