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Sagot :
Answer:
$2
Explanation:
To solve the given problem, we'll use the below compound interest formula;
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]where A = future amount = $400
P = the initial amount( principal)
r = annual interest rate in decimal form = 34/100 = 0.34
n = number of compounding periods in a year = 365
t = time in years = 16
Let's go ahead and substitute the above values into our formula and solve for P;
[tex]\begin{gathered} 400=P(1+\frac{0.34}{365})^{365\times16} \\ 400=P(1.0009)^{5840} \\ 400=229.86P \\ P=\frac{400}{229.86} \\ \therefore P=2\text{ dollars} \end{gathered}[/tex]
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