Question 195997
The formula is
{{{A = P*(1 + r/n)^(nt)}}}
{{{A}}} is the amount you end up with after {{{t}}} years
{{{P}}} is amount invested initially
{{{n}}} is the number of times per years compounded
{{{r}}} is the interest rate
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given:
{{{A = 75000}}}
{{{t = 15}}}
{{{n = 2}}}
{{{r = .049}}}
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You need to find {{{P}}}
{{{A = P*(1 + r/n)^(nt)}}}
{{{75000 = P*(1 + .049/2)^(2*15)}}}
{{{75000 = P*1.0245^30}}}
{{{P = 75000*1.0245^(-30)}}}
{{{P = 75000*.48377243}}}
{{{P = 36282.93}}}
I need to put $36,282.93 in the account
check:
{{{A = P*(1 + r/n)^(nt)}}}
{{{A = 36282.93*(1 + .049/2)^30}}}
{{{A = 36282.93*1.0245^30}}}
{{{A = 36282.93*2.067088}}}
{{{A = 74999.99}}} close enough