Question

Ariana is going to invest in an account paying an interest rate of 3.4% compounded monthly. How much would Ariana need to invest, to the nearest dollar, for the value of the account to reach $9,200 in 14 years?

Answer 1

Answer:

Ariana is going to invest P($) in an account paying an interest rate of 3.4% compounded monthly.

After 14 years, the amount of money in Adrina's account is calculated by:

A = P x (1 + rate)^(time)

or

A = P x (1 + 3.4/12)^(14 x 12)

or

9200 = P x (1 + 3.4/12)^(14 x 12)

=> P = 9200/[(1 + 3.4/12)^(14 x 12)]

=> P = 5791.044$

Hope this helps!

:)