SOLUTION: If the compound interest formula is solved for a, we get a equals StartFraction y Over left-parenthesis 1 plus n right-parenthesis Superscript t EndFraction where a is the a

Question 1069261: If the compound interest formula is solved for a, we get
a equals StartFraction y Over left-parenthesis 1 plus n right-parenthesis Superscript t EndFraction
where a is the amount that must be deposited now at interest rate n to produce an amount y in t years. How much money would have to be invested at 7.5% per year to accumulate to $10000 in 13 years?
Round to the nearest dollar.
Answer by KMST(5328) (Show Source): You can put this solution on YOUR website!
I agree that with
= final balance,
= amount initially deposited/invested,
= annual yield (as a decimal),
= number of years,
the relationship between those variables is
or .

In this case, because the yield per year is

All you have to do is substitute the values for , , and :
a ===
NOTE: The values and are rounded,
and I used help from the computer to calculate the final result,
with the computer doing its best to calculate and accurately,
and properly rounding the results for display purposes.
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