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24 May, 10:26

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

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  1. 24 May, 10:48
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    Using the same form as above:

    a*1.025^t = 500.

    a = 500 / (1.025^t), where t=6 and a is the starting amount.

    Thus:

    a = 500 / (1.025^6) = 431.148433 = 431.15$
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