Along-term bond returns you $21,171.63 at the end of ten years. assuming an interest rate of 4.5% compounded daily, what was the amount of your initial investment?

A=final amount
P=amount investeed
r=rate in decimal
n=number of times per year compounded

we need to solve for P
easy

divide both sides by


there are 365 or 366 days in a year depending on leap years (actually there are about 365.25 days per year so we jsut add 1 day every 4 years)

we will use 365 for number of days in a year

A=21171.63
P=P
r=4.5%=0.045
t=10
n=365


use your calculator
13500=P

initial investment was $13500