SOLUTION: Hello Tutors, Can I please have your assistance? What must be invested today, to be worth $20,000 in 10 years, if it is compounded yearly at 8%?

Algebra ->  Exponential-and-logarithmic-functions -> SOLUTION: Hello Tutors, Can I please have your assistance? What must be invested today, to be worth $20,000 in 10 years, if it is compounded yearly at 8%?      Log On


   

Question 1040960: Hello Tutors,
Can I please have your assistance? What must be invested today, to be worth $20,000 in 10 years, if it is compounded yearly at 8%?
Answer by josgarithmetic(39620) About Me  (Show Source):
You can put this solution on YOUR website!
p%2A1.08%5E10=20000

log%28%28p%29%29%2B10%2Alog%28%281.08%29%29=log%28%2820000%29%29

log%28%28p%29%29=log%28%282%2A10%5E4%29%29-10%2Alog%28%281.08%29%29

log%28%28p%29%29=log%28%282%29%29%2B4%2Alog%28%2810%29%29-10%2Alog%28%281.08%29%29

Choose the base you want, b, and evaluate log%28%28p%29%29.
log%28b%2Cp%29=r
You want the antilog of r.

b%5Er=p


You would most likely choose 10 or e for b.