document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=668849>Question 668849</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Anthony invested a sum of money 6 yr ago in a savings account that has since paid interest at the rate of 8%/year compounded quarterly. His investment is now worth $61,120.62. How much did he originally invest? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #415898 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=415898\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Anthony invested a sum of money 6 yr ago in a savings account that has since paid interest at the rate of 8%/year compounded quarterly. His investment is now worth $61,120.62. How much did he originally invest?<BR>\n" );
document.write( "**<BR>\n" );
document.write( "Compound interest formula: A=P(1+i)^n, i=interest rate per period, n=number of periods, A=amt after n periods.<BR>\n" );
document.write( "For given problem:<BR>\n" );
document.write( "i=8%/4=2%<BR>\n" );
document.write( "n=4*6=24 periods(qtrs)<BR>\n" );
document.write( "A=$61,120.62<BR>\n" );
document.write( "P=To find<BR>\n" );
document.write( "..<BR>\n" );
document.write( "P=A/(1+i)^n<BR>\n" );
document.write( "=A/(1+.02)^24<BR>\n" );
document.write( "=61120.62/(1.02)^24<BR>\n" );
document.write( "P&#8776;38000<BR>\n" );
document.write( "Anthony originally invest $38,000<BR>\n" );
document.write( " </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );