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24 August, 13:46

Mr. M has placed his tax return into an account that pays 3% interest added to his account each

year. After 20 years he has $5,418.

SAILI+0.03)

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  1. 24 August, 14:00
    0
    Using Amount = p (1 + rt)

    $5418 = p (1 + 0.03 * 20)

    From R. H. S

    = p (1 + 0.6)

    = p (1.6)

    $5418 = p (1.6)

    $5418/1.6 = p

    $3386.25 = p (tax return)
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