For the following exercise use the compound interest formula

For the following exercise, use the compound interest formula, A(t) = P(1 + r/n)^nt, where money is measured in dollars. After a certain number of years, the value of an investment account is represented by the expression 10, 400(1 + 0.04/12)^120. What was the initial deposit made to the account? $

Solution

If the Formula of A(t) is used, The Initial Deposit(P) = $10,400

Number of period (n) = 12

Number of Years(t) = 10