how much must you deposit in an account that pays 6.25% interest compounded annually to have a balance of $700 after 2 years​

Answer:[tex]\$620.07[/tex]  Step-by-step explanation:we know that    The compound interest formula is equal to  [tex]A=P(1+\frac{r}{n})^{nt}[/tex]  where  A is the Final Investment Value  P is the Principal amount of money to be invested  r is the rate of interest  in decimal t is Number of Time Periods  n is the number of times interest is compounded per year in this problem we have  [tex]t=2\ years\\A=\$700\\ r=0.0625\\n=1[/tex]  substitute in the formula above  and solve for P[tex]700=P*(1+\frac{0.0625}{1})^{2}[/tex]  [tex]700=P*(1.0625)^{2}[/tex]  [tex]P=700/(1.0625)^{2}[/tex]  [tex]P=\$620.07[/tex]