Question 475921: How much principal, to the nearest dollar, should you invest at 4% in order to have $3,000 for a vacation to Europe in 3 years?
PLZ Solve this application using logarithms
Thank You In Advance!
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! How much principal, to the nearest dollar, should you invest at 4% in order to have $3,000 for a vacation to Europe in 3 years?
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Assuming compound interest:
A(t) = P(1+(r/n))^(nt)
3000 = P(1+(0.04/1))^(1*3)
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3000 = P(1.04)^3
Principal = $2666.99
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Cheers,
Stan H.
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