SOLUTION: This is the correct question. When Dennis turns 18, his parents will give him money that they invested for him when he was born. They invested the money in a savings account tha

Algebra ->  Coordinate Systems and Linear Equations  -> Linear Equations and Systems Word Problems -> SOLUTION: This is the correct question. When Dennis turns 18, his parents will give him money that they invested for him when he was born. They invested the money in a savings account tha      Log On


   

Question 1122963: This is the correct question. When Dennis turns 18, his parents will give him money that they invested for him when he was born. They invested the money in a savings account that had a interest rate of 7.2% compounded monthly. If they will give him $9101.31, how much did they initially invest?
Answer by josgarithmetic(39620) About Me  (Show Source):
You can put this solution on YOUR website!
7.2% yearly interest means 7.2%2F12=0.6percent monthly interest.

18 years at 12 compounding periods per year means 18%2A12=216 compounding periods from Dennis's birth to age 18.

p, the initial investment
p%2A%281.006%29%5E216=9101.31
Solve for p.