Adriel is going to invest in an account paying an interest rate of 2.4% compounded monthly. How much would Adriel need to invest, to the nearest ten dollars, for the value of the account to reach 120,000 in 8 years?

Lösung

A d r i e l 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 2.4% 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 A d r i e l n ee d t o in v es t, t o t h e n e a res t t e n d o ll a rs, 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 120, 000 in 8 ye a rs ?

Principal : 99055.82

Schritte zur Lösung

Translate the problem into an equation:

120000 = P (1 + \frac{0.024}{12})^{12 \cdot 8}

Löse nach

P, 120000 = P (1 + \frac{0.024}{12})^{12 \cdot 8} : P = 99055.82

Principal : 99055.82