SOLUTION: Is my answer correct? thanks you for checking. How much should be invested now at 7.55% compounded annually to have $46,000 in 12 years? ~~110174.9364

Question 1059783: Is my answer correct? thanks you for checking.
How much should be invested now at 7.55% compounded annually to have $46,000 in 12 years?
~~110174.9364
Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website!
P=Po{1+0.0755)^12
46000=P(1.0755)^12;
46000=P(2.395). Without rounding,
P=$19,205.82,rounding at end. ANSWER
The answer you had is larger.
You invest less than you get, so the answer must be less than 46,000. What you did was interchange Po, the starting, with P, the end. Po, the starting, is what you don't know. P, the end, you do know.
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