Find the sum of money that accumulates to $5483

Management Apr 25, 2021

Find the sum of money that accumulates to $5483.33 at 3.6% compounded annually in seven years, two months.
The sum of money is $ (Round to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

Expert Solution

Computation of Sum of Money or Principal:

Amount = Principal*(1+Rate)^Time

$5,483.33 = Principal *(1+3.6%)^(7+2/12)

$5,483.33 = Principal*(1+3.6%)^7.1667

$5,483.33 = Principal*1.288

Principal = $5,483.33/1.288

Principal = $4,255.65

So, Sum of money is $4,255.65.

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