SOLUTION: Debbie plans on investing enough money so that she will have $2000 at the end of two years. How much money wll she have to invest now if her money will grow according to the follow

Question 203103: Debbie plans on investing enough money so that she will have $2000 at the end of two years. How much money wll she have to invest now if her money will grow according to the followning formula: 2000=P(1.025)^4?
When I work this problem I seem to come up with 0=0
2000=P(1.025)^4
1.025^4=1.103812891
I don't understand.
Answer by jim_thompson5910(35256) (Show Source): You can put this solution on YOUR website!
I'm assuming that you have the correct formula...

Start with the given equation.

Raise 1.025 to the 4th power to get 1.103812

Divide both sides by 1.103812 to isolate "P".

Divide

Rearrange the equation and round to the nearest hundredth (ie to the nearest penny).

So she needs to invest $1,811.90
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