Given:
The compounded quarterly interest, r =5 % = 0.05 and n=4.
The amount accumulates after 35 years, A =75,000.
The period of time. t=35 years.
Required:
We need to find the deposited amount.
Explanation:
Let the deposited amount =P.
Consider the formula to find the amount in compounded interest.
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]Substitute n=4, r =0.05, t=35 and A=75000 in the formula to find the deposited amount.
[tex]75000=P(1+\frac{0.05}{4})^{4\times35}[/tex]Solve for P.
[tex]75000=P\times5.69251[/tex][tex]\frac{75000}{5.69251}=P[/tex][tex]P=13175.1873[/tex][tex]P=13175.19[/tex]Final answer:
[tex]undefined[/tex]