Answer
$9,367.75
Explanation
The amount, A, that an amount invested, P, will yield at a rate of r% over time t is given as
A = P (1 + r)ᵗ
For this question
A = 11,000
P = ?
r = 5.5% = 0.055
t = 3
11,000 = P (1 + 0.055)³
11,000 = P (1.055)³
1.055³ = 1.17424
11,000 = P (1.055)³
11,000 = 1.17424P
We can rewrite this as
1.17424P = 11,000
Divide both sides by 1.17424
(1.17424P/1.17424) = (11,000/1.17424)
P = $9367.75
Hope this Helps!!!
