document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=820451>Question 820451</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Can you please show me how to figure this out:<BR>\n" );
document.write( "Les Hinckle made a deposit in the bank on January 1, 2005. The bank pays interest at the rate of 8% compounded annually. On January 1, 2012, the deposit has accumulated to $ 30,000. How much money did Les originally deposit on January 1, 2005?<BR>\n" );
document.write( "(the formula in my book has me confused) </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #493556 by </B><A HREF=/tutors/aboutme.mpl?userid=stanbon><B>stanbon(75887)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=stanbon><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=493556\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Les Hinckle made a deposit in the bank on January 1, 2005. The bank pays interest at the rate of 8% compounded annually. On January 1, 2012, the deposit has accumulated to $ 30,000. How much money did Les originally deposit on January 1, 2005?<BR>\n" );
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document.write( "A(t) = P(1+(r/n))^(nt)<BR>\n" );
document.write( "30,000 = P(1+(0.08/1))^(1*7)<BR>\n" );
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document.write( "P = 30,000/(1.08^7)<BR>\n" );
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document.write( "P = $17,504.17<BR>\n" );
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document.write( "Cheers,<BR>\n" );
document.write( "Stan H.<BR>\n" );
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