SOLUTION: Hi, I am having a hard time trying to resolve this problem Donna deposited some money into an account paying 8% per annum, compounded quarterly. When she goes into the bank 3 year

Question 55340: Hi, I am having a hard time trying to resolve this problem
Donna deposited some money into an account paying 8% per annum, compounded quarterly. When she goes into the bank 3 years later, she discovers that there is $1585.30 in her account. What was the initial amount Donna deposited?
Any help will be eternally appreciated
thanks
Answer by checkley71(8403) (Show Source): You can put this solution on YOUR website!
interest=principal*rate*time(years)
1585.3-P=P*.02*12 NOTE QUARTERLY NEANS THERE ARE 4*3 INTEREST PERIOD.
1585.3-P=.24P
P+.24P=1585.3
1.24P=1585.3
P=1585.3/1.24
P=1278.47
THEREFORE THE INTEREST WAS 1585.3-1278.47=306.83
PROOF
306.83=1278.47*.02*12
306.83=306.83

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