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NeTakaya
3 years ago
7

Solve by using proper methods. Show your work.

Mathematics
1 answer:
NeX [460]3 years ago
7 0

Answer:

$70,201.38

Step-by-step explanation:

To determine the principal amount, we can use the formula:

P=\dfrac{A}{(1+\frac{r}{n})^{nt}}

A = $200,000

r = 7% or 0.07

t = 15 years

n = 12

Now let's substitute our values.

P=\dfrac{200,000}{(1+\frac{0.07}{12})^{12(15)}}

P=\dfrac{200,000}{(1.00583333333)^{12(15)}}

P=70,201.38

So the principal needed to get 200,000 in 15 years is $70,201.38.

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