# SOLUTION: how much money should be invested in an account that earns 9% interest, compounded monthly, if you want to have 5000000 after 20 years

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 Question 504296: how much money should be invested in an account that earns 9% interest, compounded monthly, if you want to have 5000000 after 20 yearsAnswer by mananth(12270)   (Show Source): You can put this solution on YOUR website!Principal P = x Amount= 5000000 years=n 20 compounded 12 times a year (t) Rate = 9.00 0.750 Amount = P*((n+r)/n)^nt 5000000 = x *( 1 + r/n )^ n 5000000 =P(1+0.090/12)^ 12* 20 5000000 = P( 1.00750 )^ 240 5000000 /( 1.01 )^ 240 = P P= 832064.22