SOLUTION: An account earns interest at a stated annual rate of 7.4%, with monthly compounding. Amy wants $15,000 in that account after 5 years from now. How much does she have to deposit to
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Question 367705: An account earns interest at a stated annual rate of 7.4%, with monthly compounding. Amy wants $15,000 in that account after 5 years from now. How much does she have to deposit to attain that goal
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
An account earns interest at a stated annual rate of 7.4%, with monthly compounding. Amy wants $15,000 in that account after 5 years from now. How much does she have to deposit to attain that goal
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A(t) = P(1+(r/n))^(nt)
15000 = P(1+(0.074/12))^(12*5)
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15000 = P(1.4461
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p = $10372.79
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Cheers,
Stan H.
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