Question

How much money should be deposited today in an account that earns 9.5% compound education monthly so that it will accumulate to $10,000 in one and half year?

Answer 1

$\bf \qquad \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+\frac{r}{n}\right)^{nt} \quad \begin{cases} A=\textit{compounded amount}\to &\ 10000\\ P=\textit{original amount deposited}\\ r=rate\to 9.5\%\to \frac{9.5}{100}\to &0.095\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{monthly, thus} \end{array}\to &12\\ t=years\to &\frac{3}{2} \end{cases}$

notice, the years are one and a half, or 3/2

solve for P, to see what the Principal should be