SOLUTION: The Martinelli family sells some property obtained from an inheritance. How much should they invest at 7% compounded annually in order to have $23,000 in 6 years? (Round your final

Algebra ->  Finite-and-infinite-sets -> SOLUTION: The Martinelli family sells some property obtained from an inheritance. How much should they invest at 7% compounded annually in order to have $23,000 in 6 years? (Round your final      Log On


   

Question 1148463: The Martinelli family sells some property obtained from an inheritance. How much should they invest at 7% compounded annually in order to have $23,000 in 6 years? (Round your final answer to two decimal places.)
Answer by greenestamps(13258) About Me  (Show Source):
You can put this solution on YOUR website!


In a year with 7% annual interest, the value of an investment grows by a factor of 1+.07 = 1.07.

In t years the value grows by a factor of (1.07)^t.

You want the value of initial amount x to be $23,000 after 6 years:

x%281.07%29%5E6+=+23000
x+=+23000%2F%281.07%29%5E6

Use a calculator....