Your grandmother invested one lump sum 17 years ago at 4.25% interest. Today,she gave you the proceeds of that investment which totaled $5,539.92. How much did your grandmother originally invest?

Question

Quizplus · Accepted Answer

The original investment can be calculated using the formula for compound interest: P = A / (1 + r)^n, where A is the amount received ($5,539.92), r is the interest rate (4.25% or 0.0425), and n is the number of years (17). Solving this gives approximately $2,730.30.

Your Grandmother Invested One Lump Sum 17 Years Ago at 4.25