Answer:
$88.48
Step-by-step explanation:
First, we can check the formula for compound interest, which is
[tex]A = P (1 + r)^{n}[/tex] , with A representing the end amount, r representing the interest rate, and n representing the amount of times compounded. We know that the interest rate is 9% (to convert this to a decimal, we can divide it by 100, resulting in 0.09), the end amount is 700, and the amount of times compounded is however many months are in 2 years (there are 12 months per year, and 12 *2 = 24, so 24 times).
Thus, our equation is
[tex]700 = P (1 + 0.09)^{24}\\700 = P (7.911083)\\[/tex]
Divide both sides by 7.911083 to isolate P, and we get
P = 88.48 (rounded to the nearest cent)
