Question

If I have $500 in my account after 4 years of investing at 2.5% per year. how much money did I start with?

Answer 1

$452.98

Explanation:

`FV=P(1+r)^t`
FV= Future Value
P= Principle
r= Interest rate
t= Time

Solve for P by dividing by `(1+r)^t` to both sides of the equation:

`P=(FV)/(1+r)^t`
`P=(500)/(1+0.025)^4`
`P=$452.98`