SOLUTION: I need help trying to solve this problem, Thanks Problem : What is the amount P that must be invested at interest rate 5.5% compounded daily to obtain the balance of A =$15

Question 193100: I need help trying to solve this problem, Thanks
Problem :
What is the amount P that must be invested at interest rate 5.5% compounded daily to obtain the balance of A =$150000 in t years.
t = 1 P=?
t= 10 P=?
Given is the interest rate formula A=P(1+(r/n))^nt
Any help with this question will be greatly appreciated, thanks.
Answer by jim_thompson5910(35256) (Show Source): You can put this solution on YOUR website!
Start with the compound interest formula

Plug in , (this is the decimal form of 5.5% interest), and

Divide. Note: this value is approximate. So all future calculations will be approximate.

Add

Divide both sides by to isolate "P".

Rearrange the equation

Now simply plug in the given values of "t" to find P:

t=1:

Start with the given equation.

Plug in

Multiply

Raise 1.0001507 to the 365th power to get 1.0565420

Divide

So if you want to have $150,000 in the account in 1 year, you need to invest about $141,972.59 in the account.

I'll let you do the other value of t (it will follow the same procedure).

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