Money is invested into an account earning 4.24% interest compounded annually. If the accumulated value after 18 years will be $2
5,000, approximately how much money is presently in the account?
1 answer:
Answer: $11,839.16
<u>Step-by-step explanation:</u>
Use the compounded annually formula:
, where:
- A is the accumulated amount (total amount)
- P is the principle (amount invested)
- r is the interest rate (in decimal form)
- t is the time (length of time the principle amount was invested)
![A=P(1 + r)^t\\\\25,000=P(1+0.0424)^{18}\\\\\dfrac{25,000}{(1.0424)^{18}}=P\\\\11,839.156=P\\\\11,839.16 = P\quad \text{(rounded up to the nearest penny)}](https://tex.z-dn.net/?f=A%3DP%281%20%2B%20r%29%5Et%5C%5C%5C%5C25%2C000%3DP%281%2B0.0424%29%5E%7B18%7D%5C%5C%5C%5C%5Cdfrac%7B25%2C000%7D%7B%281.0424%29%5E%7B18%7D%7D%3DP%5C%5C%5C%5C11%2C839.156%3DP%5C%5C%5C%5C11%2C839.16%20%3D%20P%5Cquad%20%5Ctext%7B%28rounded%20up%20to%20the%20nearest%20penny%29%7D)
You might be interested in
Answer: x < 5
Step-by-step explanation: 4x + 40 < 60
85 Quarts equals 170 Pints Because:
1 Quart = 2 Pints
85*2=170 Pints
Because rectangles' sides are equal two by two. they are not all congruent
so the shape is a square
There is no solution to the problem because it is parallel.