The principal investment required to get a total amount of $ 1,000,000.00 from compound interest at a rate of 6% per year compounded 12 times per year over 45 years is $ 67,659.17.

Step-by-step explanation:

Given

Accrued Amount A = $1000000

Interest rate r = 6% = 0.06

Time period t = 45 years

Compounded monthly n = 12

To determine:

Principle amount P = ?

Using the formula

$A\:=\:P\left(1\:+\:\frac{r}{n}\right)^{nt}$

$P\:=\frac{A}{\left(1\:+\:\frac{r}{n}\right)^{nt}}$

substituting A = 1000000, r = 0.06, t = 45, and n = 12

$P\:=\frac{1000000}{\left(1\:+\:\frac{0.06}{12}\right)^{12\cdot 45}}\:$

$=\frac{1000000}{1.005^{540}}$

$P = 67659.17$ $

Therefore, the principal investment required to get a total amount of $ 1,000,000.00 from compound interest at a rate of 6% per year compounded 12 times per year over 45 years is $ 67,659.17.

7 0

3 years ago

The pressure at sea level is

seraphim [82]

Answer:

653

Step-by-step explanation:

gshsjfsffshdjfhfbfbrvdhegdvdvr

3 0

3 years ago