Question 124290
The equation for compound interest is
{{{A = P(1 + (r/n))^(nt)}}}
{{{P}}} is the amount invested
{{{r}}} is the compound rate of interest
{{{n}}} is the times per year compounded
{{{t}}} is the time in years
I need $1000, so {{{A = 1000}}}
{{{1000 = P(1 + (.1/12))^(12*1)}}}
{{{1000 = P(1.00833)^12}}}
{{{1000 = P*1.10467}}}
{{{P = 1000 / 1.10467}}}
{{{P = 905}}}
Yhe answer is (d). You need to invest $905