SOLUTION: Debbie plans on investing enough money so that she will have $2000 at the end of two years. How much money wll she have to invest now if her money will grow according to the follow

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Question 203103: Debbie plans on investing enough money so that she will have $2000 at the end of two years. How much money wll she have to invest now if her money will grow according to the followning formula: 2000=P(1.025)^4?
When I work this problem I seem to come up with 0=0
2000=P(1.025)^4
1.025^4=1.103812891
I don't understand.
Answer by jim_thompson5910(35256) About Me  (Show Source):
You can put this solution on YOUR website!
I'm assuming that you have the correct formula...



2000=P%281.025%29%5E4 Start with the given equation.


2000=P%281.103812%29 Raise 1.025 to the 4th power to get 1.103812


2000%2F1.103812=P Divide both sides by 1.103812 to isolate "P".


1811.902=P Divide


P=1811.90 Rearrange the equation and round to the nearest hundredth (ie to the nearest penny).



So she needs to invest $1,811.90