Tristan is going to invest in an account paying an interest rate of 6.2% compounded monthly. How much would Tristan need to invest, to the nearest cent, for the value of the account to reach 18,100 in 12 years?

Solución

T r i s t an i s g o in g t o in v es t in an a cco u n t p a y in g an in t eres t r a t e o f 6.2% co m p o u n d e d m o n t h l y . Ho w m u c h w o u l d T r i s t an n ee d t o in v es t, t o t h e n e a res t ce n t, f or t h e v a l u e o f t h e a cco u n t t o re a c h 18, 100 in 12 ye a rs ?

Principal : 8617.78

Pasos de solución

Translate the problem into an equation:

18100 = P (1 + \frac{0.062}{12})^{12 \cdot 12}

Resolver para

P, 18100 = P (1 + \frac{0.062}{12})^{12 \cdot 12} : P = 8617.78

Principal : 8617.78