Popular >

Alang is going to invest in an account paying an interest rate of 5% compounded monthly. How much would Alang need to invest, to the nearest hundred dollars, for the value of the account to reach 58,000 in 5 years?

Solution

Alang is going to invest in an account paying an interest rate of 5% compounded monthly. How much would Alang need to invest, to the nearest hundred dollars, for the value of the account to reach 58, 000 in 5 years?

Solution

Principal : 45193.91

Solution steps

Translate the problem into an equation:

58000 = P (1 + \frac{0.05}{12})^{12 \cdot 5}

Solve for

P, 58000 = P (1 + \frac{0.05}{12})^{12 \cdot 5} : P = 45193.91

Principal : 45193.91

Popular Examples

Twice the difference of a number and 6 is 8 Amal wants to place all the numbers 1 to 10 in the circles in diagram with one number in each circle. She wants the sum of the numbers in any four circles that are in a straight line to be 23 , for example the sum of numbers in four grey circles is 23 . What number must she place in the circle containing the question mark?The difference between five times a number and six more than four times the number 15 less than a number is 45 Four more than the product of a number and 9 is equal to 3