document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=880966>Question 880966</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Les Hinckle made a deposit in the bank on January 1, 2005. The banks 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?  </SPAN>\n" );
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document.write( "Compound interest formula: A=P(1+i)^n, P=initial investment, i=interest per compounding period, n=number of periods, A=amount after n-periods.<BR>\n" );
document.write( "For given problem:<BR>\n" );
document.write( "i=8%=.08<BR>\n" );
document.write( "n=7<BR>\n" );
document.write( "A=$30,000<BR>\n" );
document.write( "..<BR>\n" );
document.write( " A=P(1+i)^n<BR>\n" );
document.write( "30000=P(1+.08)^7=P(1.08)^7<BR>\n" );
document.write( "P=30000/(1.08)^7=17505<BR>\n" );
document.write( "How much money did Les originally deposit on January 1, 2005? $17,505 </SPAN>\n" );
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