document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=408364>Question 408364</A>: <I><SPAN STYLE=\"word-break: break-all;\"> kane's grandfather deposited some money for him when he was born and it eared 12%p.a. interest, compounded quarterly, untill he turned 21. if he recieved a cheque for $25,000, what was the initial deposit? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #287714 by </B><A HREF=/tutors/aboutme.mpl?userid=lwsshak3><B>lwsshak3(11628)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=lwsshak3><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=287714\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> kane's grandfather deposited some money for him when he was born and it eared 12%p.a. interest, compounded quarterly, untill he turned 21. if he recieved a cheque for $25,000, what was the initial deposit<BR>\n" );
document.write( "..\r<BR>\n" );
document.write( "\n" );
document.write( "The formula to use here:<BR>\n" );
document.write( "A=P(1+r)^n, where,<BR>\n" );
document.write( "A=amt earned<BR>\n" );
document.write( "P=Initial investment=what we want to find out<BR>\n" );
document.write( "r=interest per period=.12/4=.03<BR>\n" );
document.write( "n=number of periods=21*4=84\r<BR>\n" );
document.write( "\n" );
document.write( "25000=P(1+.03)^84<BR>\n" );
document.write( "25000=P(1.03)^84<BR>\n" );
document.write( "P=25000/(1.03)^84<BR>\n" );
document.write( "P=$2087.44<BR>\n" );
document.write( "ans:<BR>\n" );
document.write( "The initial deposit 21 years ago=$2087.44 </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );