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Norma opened a savings account 5 years ago the account earns 7% interest compounded annually if the current balance is 1,000.00 how much did she despoit initially

Respuesta :

The formula to calculate the total amount in her savings account after y years, with an interest of 7% is:

[tex]T=S(1.07)^y[/tex]

Where S is the inicial saving

Thereby, after 5 years and a total of $1000.00 in her account,

[tex]\begin{gathered} 1000=S(1.07)^5\rightarrow S=\frac{1000}{(1.07)^5} \\ \\ \rightarrow S=712.99 \end{gathered}[/tex]

Therefore, Norma's initial deposit was $712.99