Help!!!!!!!!! IM HORIBLE AT MATH NEED SOME ANSWERS
2 answers:
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Answer:
A=25000 is the future value. P the value that we need to invest. r= 0.04 represent the interest rate in fraction. n = 12 represent the number of times that the rate is compounded in a year. t = 5 years.
If we solve for the value of P we got:
And replacing we got:
And rounded to the nesrest penny we need to invest $20475.08 in order to have after 5 years $25000
Step-by-step explanation:
For this case we can use the future value with compound interest given by:
Where:
A=25000 is the future value. P the value that we need to invest. r= 0.04 represent the interest rate in fraction. n = 12 represent the number of times that the rate is compounded in a year. t = 5 years.
If we solve for the value of P we got:
And replacing we got:
And rounded to the nesrest penny we need to invest $20475.08 in order to have after 5 years $25000