SOLUTION: How much money must you deposit into a savings account that has an annual 3% interest rate to earn $100 in 3 years

Algebra.Com
Question 560483: How much money must you deposit into a savings account that has an annual 3% interest rate to earn $100 in 3 years
Answer by TutorDelphia(193)   (Show Source): You can put this solution on YOUR website!

when
F = Future Value (Initial deposit plus 100)
I = Interest (100 in this case)
P = principle/initial deposit (unknown)
r = interest rate (3%=.03)
t = number of years invested (3)
P+100=P*(1+.03)^3
cube 1.03
P+100=P*1.0927
subtract 1P from both sides
100=P*0.0927
divide both sides by 0.0927
1078.75=P

RELATED QUESTIONS

how much money must you deposit into a savings account that has a 3% annual interest rate (answered by mananth)
You deposit $70 in a savings account that pays an annual interest rate of 3%. How... (answered by checkley77)
you deposit $70 in a savings account that pays an annual interest rate of 3%. how much... (answered by solver91311)
Hello- trying to figure out 2 things. 1. Are they asking for the amount that had to be... (answered by Alan3354)
Suppose you deposit 160 dollars in a savings account that pays an annual rate of 9%.... (answered by rfer)
if you deposit $150 in an account that earns simple interest.The annual interest rate is... (answered by josmiceli)
Suppose you deposit $80 in a savings account that pays an annual intrest rate of 6%. How... (answered by checkley71,stanbon)
You deposit $840 in a savings account that earns a simple in n tree interest rate of 4.5% (answered by ikleyn)
You invest an initial $100 in an account that has an annual interest rate of 3%,... (answered by solver91311)