SOLUTION: Uta invests an amount into a compound interest investment account that pays 6% a year. After six years, she withdraws her total balance of $500. Using the formula , how much money

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Question 1074145: Uta invests an amount into a compound interest investment account that pays 6% a year. After six years, she withdraws her total balance of $500. Using the formula , how much money did Uta initially invest?
Found 2 solutions by addingup, josmiceli:
Answer by addingup(3677) About Me  (Show Source):
You can put this solution on YOUR website!
500 = P(1+0.06)^6
500 = P(1.4185)
P = 500/1.4185
p = 352.49 or 352.50 when you round it off was the initial amount she invested.

Answer by josmiceli(19441) About Me  (Show Source):
You can put this solution on YOUR website!
A = P (1 + r/n) (nt)
Where:
A = the future value of the investment/loan, including interest
P = the principal investment amount (the initial deposit or loan amount)
r = the annual interest rate (decimal)
n = the number of times that interest is compounded per year
t = the number of years the money is invested or borrowed for
( lifted from the calculatorsite )
--------------------------------------
+A+=+500+
+P+ is the original investment
+r+=+.06+
+n+=+1+
+t+=+6+
------------------------------
+500+=+P%2A%28+1+%2B+.06%2F1+%29%5E%28+1%2A6+%29+
+500+=+P%2A1.06%5E6+
+P+=+500+%2F+%28+1.06%5E6+%29+
+P+=+500+%2F+1.4185+
+P+=+352.485+
Uta originally invested $352.49
check the math