Eric has $100,000 in savings account.The interest rate is 8 % per year and is not compounded.To the nearest Dollar,how much will
1 answer:
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Given:
Amount after three years = $10000
Rate of interest = 8.2 percent compounded monthly = 0.082
Time = 3 years
To find:
The principal value.
Solution:
Formula for amount is
where, P is principal, r is rate of interest, n is the number of times interest compounded in an year, t is number of years.
Substitute A=10000, r=0.082, n=12 and t=3 in the above formula.
Divide both sides by 1.27783.
Therefore, today she have to deposit $7825.767.