Question 1091438
A=Ao(1.0975)^3
A, the amount paid for everything, carpet and interest,= Ao+1081.43
Therefore, Ao+1081.43=Ao(1.0975)^3=Ao*1.3219, but round at end.
Ao=1.3219Ao-1081.43
Ao-1.3219Ao=-1081.43
-0.3219 Ao=-1081.43
Ao=$3359.04.
check
3359.04(1.0975^3)=4440.47, which is $1081.43 interest.