Question

Paisley is going to invest in an account paying an interest rate of 3.8% compounded monthly. How much would Paisley need to invest, to the nearest hundred dollars, for the value of the account to reach $1,210 in 6 years?

Answer 1

Answer:

Step-by-step explanation:

Use the formula

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

Fill in the info we are given:

$1210=P(1+\frac{.038}{12})^{(12)(6)}$ and

$1210=P(1.003166667)^{72}$ and

1210 = P(1.255632915) so

P = $964