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777dan777 [17]
3 years ago
8

Your father invested a lump sum 28 years ago at 4.05 percent annual interest. Today, he gave you the proceeds of that investment

, totalling $48,613.24. How much did your father originally invest?
Business
1 answer:
wolverine [178]3 years ago
4 0

Answer:

initially the amount invested will be equal to $16211.420

Explanation:

We have given amount after 28 years A = $48613.24

Rate of interest is given  = 4.05 %

Time period which takes for amount to be $48613.24 ,  n = 28 years

We have top find the initial investment, that is principal amount P

We know that future amount is given by A=P(1+\frac{r}{100})^n

So 48613.24=P(1+\frac{4.05}{100})^{28}

48613.24=P\times 1.04^{28}

48613.24=P\times2.99

P = $16211.420

So initially the amount invested will be equal to $16211.420

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