Mr. Jimenez deposited money into an account in which interest is compounded quarterly at a rate of 2.6%. How much did he deposit if the total amount in his account after 4 years was $7160.06, and he made no other deposits or withdrawals?Formula Is : A = P ( 1 + r/n ) ^ n * tAnswer Choices:a. $6455b. $6798c. $6887d. $6977

The answer is A.

A is the amount after t years, P is the  amount originally deposited, r is the interest rate, and n is how often the interest is compounded per t.

Plug in what we know and solve for P:

[tex]7160.06=P(1+ \frac{0.026}{4})^{(4)(4)} [/tex]

P = [tex] \frac{7160.06}{(1+ \frac{0.026}{4} )^{16}} = 6454.999 [/tex]