What amount 12 months ago is equivalent to $2,900, 2½ years

from now if money earns 4.50% compounded monthly during the

intervening time?

Thank you!

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- Oct 30th 2008, 09:11 PMSk9934compound interest problem
What amount 12 months ago is equivalent to $2,900, 2½ years

from now if money earns 4.50% compounded monthly during the

intervening time?

Thank you! - Oct 31st 2008, 03:42 AMBoboStrategyRe: compound interest
Here's a hint:

$\displaystyle

x*(1+(0.045/12))^{(12+(2.5*12))}=x*(1+(0.045/12))^{42} = 2900

$

Then solve for x.