Donna Deposited money onto an account that pays 8% per annum, compounded quarterly. When she goes back 3 years later she discovers 1585.30 in her account.
So Here is my question, I know the formula A=P(1+i)^n but do not know what values to put in for i or n
I have so far 1585.30=P(1+0.2)^3 but I am pretty sure that is incorrect, please help. I do not need the answer I can figure that out on my own, I am just having difficulty understanding what to use for i and n.
No Tags
You have the right numbers. Answer for p, assuming the problem is trying to find out the original balance. I would try and explain the reasoning, but it is hard to say it in a way that wouldn’t confuse you more. Plus, I’m not sure what you don’t understand, how you got them, why, what is compound interest, etc? Good luck.