You can put this solution on YOUR website!
Start with the compound interest formula
(this is the decimal form of 5.5% interest), and
Divide. Note: this value is approximate. So all future calculations will be approximate.
Divide both sides by
to isolate "P".
Rearrange the equation
Now simply plug in the given values of "t" to find P:
Start with the given equation.
Raise 1.0001507 to the 365th power to get 1.0565420
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).