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If I have $500 in my account after 4 years of investing at 2.5% per year. how much money did I start with?

1 Answer

Mar 9, 2018

$452.98

Explanation:

#FV=P(1+r)^t#
FV= Future Value
P= Principle
r= Interest rate
t= Time

Solve for P by dividing by #(1+r)^t# to both sides of the equation:

#P=(FV)/(1+r)^t#
#P=(500)/(1+0.025)^4#
#P=$452.98#

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