SOLUTION: Anthony invested a sum of money 6 yr ago in a savings account that has since paid interest at the rate of 7%/year compounded quarterly. His investment is now worth $19,713.77. How

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Question 676726: Anthony invested a sum of money 6 yr ago in a savings account that has since paid interest at the rate of 7%/year compounded quarterly. His investment is now worth $19,713.77. How much did he originally invest? Please round the answer to the nearest cent.
A) $13,000.01
B) $12,500.01
C) $14,000.01
D) $11,500.01
E) $11,000.01
Answer by ewatrrr(24785) About Me  (Show Source):
You can put this solution on YOUR website!
 

Hi

 In General A+=+P%281%2Br%2Fn%29%5E%28nt%29

A = Accumulated Amount 19713.77

P= principal = 

r= annual rate = .07

n= periods per year = 4

t= years = 6

A%2F%281%2Br%2Fn%29%5E%28nt%29+=+P+

A%2F%281%2B.07%2F4%29%5E%284%2A6%29+=+P+

A%2F%281.0175%29%5E%2824%29+=+P+

 $19,713.77/1.5164 = P = $13,000.01