SOLUTION: The Martinelli family sells some property obtained from an inheritance. How much should they invest at 7% compounded annually in order to have $23,000 in 6 years? (Round your final
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Question 1148463: The Martinelli family sells some property obtained from an inheritance. How much should they invest at 7% compounded annually in order to have $23,000 in 6 years? (Round your final answer to two decimal places.)
Answer by greenestamps(13258) (Show Source): You can put this solution on YOUR website!
In a year with 7% annual interest, the value of an investment grows by a factor of 1+.07 = 1.07.
In t years the value grows by a factor of (1.07)^t.
You want the value of initial amount x to be $23,000 after 6 years:
Use a calculator....
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