Popular >

Eva is going to invest in an account paying an interest rate of 6.5% compounded annually. How much would Eva need to invest, to the nearest cent, for the value of the account to reach 41,000 in 13 years?

Solution

Eva is going to invest in an account paying an interest rate of 6.5% compounded annually. How much would Eva need to invest, to the nearest cent, for the value of the account to reach 41, 000 in 13 years?

Solution

Principal : 18081.69

Solution steps

Translate the problem into an equation:

41000 = P (1 + \frac{0.065}{1})^{1 \cdot 13}

Solve for

P, 41000 = P (1 + \frac{0.065}{1})^{1 \cdot 13} : P = 18081.69

Principal : 18081.69

Popular Examples

A teacher wants to invest 30,000 into an account that compounds annually. The interest rate at this bank is 1.8%. How much money will be in the account after 6 years?The sum of three consecutive numbers is 3939. Find the numbers.The circumference of a circle is 20pi in. What is the area, in square inches? Express your answer in terms of pipi.twice the difference of a number and 6 equals 2 the sum of 9 times a number and 8 is equal to 6