document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=966885>Question 966885</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Determine the principal P that must be invested at rate r = 9%, compounded monthly, so that $500,000 will be available for retirement in t = 9 years. (Round your answer to the nearest cent.)<BR>\n" );
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document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #590911 by </B><A HREF=/tutors/aboutme.mpl?userid=lwsshak3><B>lwsshak3(11628)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=lwsshak3><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=590911\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Determine the principal P that must be invested at rate r = 9%, compounded monthly, so that $500,000 will be available for retirement in t = 9 years. (Round your answer to the nearest cent.)<BR>\n" );
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document.write( "compound Interest formula: A=P(1+r/n)^nt, P=initial investment, r=interest rate, n=number of compounding periods per year, A=amt after t-years.<BR>\n" );
document.write( "For given problem:<BR>\n" );
document.write( "A=500,000<BR>\n" );
document.write( "P=?<BR>\n" );
document.write( "r=9%<BR>\n" );
document.write( "n=12<BR>\n" );
document.write( "t=9<BR>\n" );
document.write( "..<BR>\n" );
document.write( "500000=P(1+.09/12)^12*9<BR>\n" );
document.write( "500000=P(1+.0075)^108<BR>\n" );
document.write( "500000=P(1.0075)^108<BR>\n" );
document.write( "P=500000/(1.0075)^108<BR>\n" );
document.write( "P=223102.32<BR>\n" );
document.write( "principal P that must be invested=$223,102.32 </SPAN>\n" );
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