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Khloe is going to invest in an account paying an interest rate of 1.5% compounded annually. How much would Khloe need to invest, to the nearest dollar, for the value of the account to reach 54,000 in 11 years?

Solution

Khloe is going to invest in an account paying an interest rate of 1.5% compounded annually. How much would Khloe need to invest, to the nearest dollar, for the value of the account to reach 54, 000 in 11 years?

Solution

Principal : 45842.39

Solution steps

Translate the problem into an equation:

54000 = P (1 + \frac{0.015}{1})^{1 \cdot 11}

Solve for

P, 54000 = P (1 + \frac{0.015}{1})^{1 \cdot 11} : P = 45842.39

Principal : 45842.39

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