Kate made a deposit in a savings account that pays 5% compound interest annually two years ago. If her current account balance is $1,323, how much did she deposit in the account?
Answers:  A) $1000  B) $1100  C) $1200  D) $1300  E) $1400
We are given the final amount at the end of two years (i.e initial amount invested + interest) = $1323   Interest rate = 5%   No of $1200ycles = 2   A = P (1 +r)^n   1323 = P (1 + .05)^2   1323 = P (1 + 1/20)^2   1323 = P*(21/20)^2   Solving for P = 1200   Option $1200
<result>C</result>
Kate made a deposit in a savings account that pays 5% compound interest annually two years ago. If her current account balance is $1,323, how much did she deposit in the account?