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Vika [28.1K]
3 years ago
10

Lauren is going to invest in an account paying an interest rate of 3.4% compounded

Mathematics
1 answer:
sergij07 [2.7K]3 years ago
5 0

Answer:

P = $9948.99

Step-by-step explanation:

Use the compound amount formula A = P(1 + r)^t, with A = $13,000, t = 8 yr and r = 0.034.  Find the principal amount P.

Solving A = P(1 + r)^t for P, we get:

         $13,000           $13,000

P = -------------------- = --------------- = $9948.99

      (1 + 0.034)^8         1.3067

Lauren needs to invest $9948.99 for this purpose.

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