SOLUTION: how much must you deposit in an account that pays 6.25% interest, compounded annually, to have a balance of 700 after two years answer?

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Question 1030172: how much must you deposit in an account that pays 6.25% interest, compounded annually, to have a balance of 700 after two years answer?
Answer by Cromlix(4381) About Me  (Show Source):
You can put this solution on YOUR website!
Hi there,
100% + 6.25% = 106.25%
106.25% = 106.25/100 = 1.0625
x * 1.0625^2 = 700 (* = times)
x = 700/1.0625^2
x = 620.07 (2 decimal figures)
Hope this helps :-)