50 years ago, x amount of money was deposited at 4.6% interest rate (compounded yearly). currently, there is y amount of money in the account. now, if we invest y in a perpetual annuity we can get $24,000 at the end of each year, indefinitely. how much money was deposited ori

$104 because 4.6 x 50 = 230% that was the increase of money from 50 years ago till now24000/230=104.347... but that is rounded don to 104.34 cents as cents can go up to only 100 cent.

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tutorconsortium33 tutorconsortium33 · Answer 2 · 2022-07-02T15:05:20+02:00

$104 was deposited originally.

Compounding:

Compound interest, also known as interest on principal and interest, is the practice of adding interest to the principal amount of a loan or deposit.
It occurs when interest is reinvested, or added to the loaned capital rather than paid out, or when the borrower is required to pay it so that interest is generated the next period on the principal amount plus any accumulated interest.
In finance and economics, compound interest is common.
In contrast to simple interest, which does not compound since past interest is not added to the principal for the current period, compound interest allows interest to build over time.

Solution -

[tex]4.6[/tex] × [tex]50 = 230%[/tex]% ⇒ Money from 50 years ago till now.

[tex]\frac{24000}{230} = 104.347[/tex]

Rounded done to [tex]= 104.34[/tex].

Therefore, $104 was deposited originally.

Know more about compound interest here:

https://brainly.com/question/24924853

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