1. **Stating the problem:** Calculate the amount of money 1 year ago and 10 years ago given a current amount of 3000 and an annual interest rate of 4%. 2. **Formula used:** To find the past value $P$ given the current value $A$, interest rate $r$, and time $t$ years, use the formula for compound interest backward: $$P = \frac{A}{(1 + r)^t}$$ where $r = 0.04$ (4%) and $A = 3000$. 3. **Calculate 1 year ago:** $$P = \frac{3000}{(1 + 0.04)^1} = \frac{3000}{1.04}$$ Show canceling for division: $$P = \frac{3000}{\cancel{1.04}}$$ Calculate: $$P \approx 2884.62$$ 4. **Calculate 10 years ago:** $$P = \frac{3000}{(1 + 0.04)^{10}} = \frac{3000}{1.04^{10}}$$ Calculate $1.04^{10}$: $$1.04^{10} \approx 1.48024$$ Show canceling for division: $$P = \frac{3000}{\cancel{1.48024}}$$ Calculate: $$P \approx 2027.54$$ **Final answers:** - Amount 1 year ago: $2884.62$ - Amount 10 years ago: $2027.54$