document.write( "Question 715072: How much would i have to invest at 3% interest compounded annually in order to have $16,000.00 at the end of seven years? \n" ); document.write( "

Algebra.Com's Answer #439196 by Edwin McCravy(20054) $\"\"$ $\"About$

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How much would i have to invest at 3% interest compounded annually in order to have $16,000.00 at the end of seven years?
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document.write( "We use the formula\r\n" );
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document.write( "A = P(1 + )^n·t\r\n" );
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document.write( "in which\r\n" );
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document.write( "A = the final amount of dollars = $16,000.00\r\n" );
document.write( "P = the biginning amount of dollars = ??\r\n" );
document.write( "r = the rate expressed as a decimal = 0.03\r\n" );
document.write( "n = the number of times per year the interest is compounded = 1\r\n" );
document.write( "t = the number of years = 7\r\n" );
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document.write( "                  16000 = P(1 + )^1·7\r\n" );
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document.write( "                  16000 = P(1 + 0.03)⁷\r\n" );
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document.write( "                  16000 = P(1.03)¹²\r\n" );
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document.write( "                  16000 = P(1.425760887)\r\n" );
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document.write( "                = P\r\n" );
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document.write( "              $11222.08 = P\r\n" );
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document.write( "Edwin

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