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bazaltina [42]
3 years ago
10

Determine the amount of money you need to invest to have $18,000 dollars in 2 years if you Invest it at 20% annual Interest, com

pounded
continuously.
$28,852.84
$17,294.21
$12,065.76
$133,033.01
Mathematics
1 answer:
vekshin13 years ago
3 0

Answer:

$12,500

Step-by-step explanation:

Using the compound interest formula Accrued Amount = P (1 + r)^n

where Accrued amount = $18000

P = principal; we need to generate it

r = 20% = 0.2

n = 2

Therefore

P = Accrued amount/ (1 + r)^n

= 18000/(1+0.2)^2

= 18000/1.44

= 12,500

hence $12,500 needs to be invested

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