Emma is going to invest in an account paying an interest rate of 5.5% compounded annually. How much would Emma need to invest, to the nearest hundred dollars, for the value of the account to reach 480 in 8 years?

Solution

Solution

Principal : 312.77

Solution steps

Translate the problem into an equation:

480 = P (1 + \frac{0.055}{1})^{1 \cdot 8}

Solve for

P, 480 = P (1 + \frac{0.055}{1})^{1 \cdot 8} : P = 312.77

Principal : 312.77

Popular Examples

Lara has 8,770 in an account that earns 9% interest compounded annually.To the nearest cent, how much interest will she earn in 4 years?14 subtracted from a number is no less than 50 A car travels at a speed of 30 m/s. How much time did it take to travel 240 meters?the sum of 6 times a number and 7 is 9 the product of 12 and a number is 84. find the number