Darlene Fine wants to have at least $50,000 in her savings account in 10 years. If her account pays 3.6% interest compounded ann

Question

3 years ago

5

Darlene Fine wants to have at least $50,000 in her savings account in 10 years. If her account pays 3.6% interest compounded ann

ually, what should Darlene's initial investment be if she plans to keep the account without making deposits or withdrawals? Hint: Use the formula for annual compounding.

Mathematics

1 answer:

marshall27 [118] · Answer 1 · 2022-01-04T19:07:49+03:00

In this problem the question asked is what principal should be invested on a rate of interest of 3.6% for 10 years to get the totals amount as 50000$
the formula for compound interest is
A=P*(1+R/100)^T
we shall replace the formula
50000=X*(1+3.6/100)^10
50000=x*(100/100+3.6/100)^10
50000=x*(103.6/100)^10
50000=X*(1.036)^10
50000=1.4242x
50000/1.4242=X
35107.42=X
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