ariana is going to invest in an account paying an interest rate of 1.9% compounded monthly. how much would ariana need to invest
1 answer:
9514 1404 393
Answer:
$84,330
Step-by-step explanation:
The compound interest formula gives the value of an investment.
A = P(1 +r/n)^(nt)
where principal P is invested at annual rate r compounded n times per year for t years. Using your given values, we can solve for P.
110,000 = P(1 +0.019/12)^(12·14)
P = 110,000/(1 +0.019/12)^(12·14) ≈ 110,000/1.00158333...^168
P ≈ 110,000/1.30446
P ≈ 84326.04 ≈ 84,330 . . . . dollars
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