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Popular Word Problems >

What principle will amount to 1000 if invested at 2% compounded monthly for 10 years?

Solution

Wha t p r in c i pl e w i ll am o u n t t o 1000 i f in v es t e d a t 2% co m p o u n d e d m o n t h l y f or 10 ye a rs ?

Solution

Principal : 818.87

Solution steps

Translate the problem into an equation:

1000 = P (1 + \frac{0.02}{12})^{12 \cdot 10}

Solve for

P, 1000 = P (1 + \frac{0.02}{12})^{12 \cdot 10} : P = 818.87

Principal : 818.87

Popular Examples

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