Popular >

Santiago is going to invest in an account paying an interest rate of 3.3% compounded annually. How much would Santiago need to invest, to the nearest ten dollars, for the value of the account to reach 81,000 in 16 years?

Solution

Santiago is going to invest in an account paying an interest rate of 3.3% compounded annually. How much would Santiago need to invest, to the nearest ten dollars, for the value of the account to reach 81, 000 in 16 years?

Solution

Principal : 48181.45

Solution steps

Translate the problem into an equation:

81000 = P (1 + \frac{0.033}{1})^{1 \cdot 16}

Solve for

P, 81000 = P (1 + \frac{0.033}{1})^{1 \cdot 16} : P = 48181.45

Principal : 48181.45

Popular Examples

Larry inherited some money from his grandfather and put it in a bank account that earns 2% interest compounded monthly. After 9 years, Larry had 500.00 in the bank account. How much interest did he earn?Seven more than the product of a number and 8 is equal to 9.you receive 120 dollars at the end of the year for the next 3 years, if the interest rate is 9 percent what is the present value of these cash flows the sum of sum consecutive integers is greater than thirty A number subtracted from-27 amounts to 194