Question

Money is invested into an account earning 4.25% interest compounded annually. If the accumulated value after 18 years will be $25,000, approximately how much money is presently in the account?
a.
$5,875
b.
$11,820
c.
$19,125
d.
$23,960

Answer 1

We are given with the following:
Effective annual interest, i = 0.0425
Future worth, F = $25000
Number of years, n = 18

We use the formula to solve for the present worth of the money:
P = F / (1 + i)^n
P = 25000 / (1 + 0.0425)^18
P = 11818.73

The closest answer is:
b.
$11,820

Answer 2

Answer:

B. b. $11,820

Explanation:

I got the right answer on edge/e2020, and you need to

STUDY ON YOUR MATH !!!