# Find the initial investment?

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• Jul 10th 2006, 09:37 AM
kwtolley
Find the initial investment?
Captinblack invested some money at 10% compounded quarterly at the end of three years his investmenthad grown to $2488.05. Find the initial investment. My answer is$1850.00 thanks for checking.
• Jul 10th 2006, 11:44 AM
Rich B.
Greetings Kwtolley:

I have but one word to utter in response to your work here today...Perfect! :)

Enjoy,

Rich B.
• Jul 10th 2006, 12:22 PM
Soroban
Hello, kwtolley!

Quote:

Captain Blackbeard invested some money at 10% compounded quarterly.
At the end of three years his investmenthad grown to $2488.05. Find the initial investment. My answer is$1850.00

I assume you used a variation of : .$\displaystyle A\;=\;P\left(1 + \frac{i}{n}\right)^{nt}$

Then: .$\displaystyle P \;=\;\frac{2488.05}{\left(1 + \frac{0.10}{4}\right)^{12}} \;=\;1850.00422 \;\approx\;\$1850$~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ It's hard to see your work from here . . . It looks like you played the$\displaystyle J\heartsuit$instead of the$\displaystyle 7\clubsuit$. Then you transposed to the key of$\displaystyle F\sharp\text{ minor}$instead of$\displaystyle E\flat\text{ major}\$.

Lucky for you, the two errors canceled out.

• Jul 11th 2006, 07:59 AM
kwtolley
right answers
So most of my answers from yesterday are right. or some are right. thanks fo looking at my answers.