Mackenzie is going to invest in an account paying an interest rate of 6.5% compounded monthly. How much would Mackenzie need to invest, to the nearest ten dollars, for the value of the account to reach 194,000 in 11 years?

Lösung

M a c k e n z i e i s g o in g t o in v es t in an a cco u n t p a y in g an in t eres t r a t e o f 6.5% co m p o u n d e d m o n t h l y . Ho w m u c h w o u l d M a c k e n z i e n ee d t o in v es t, t o t h e n e a res t t e n d o ll a rs, f or t h e v a l u e o f t h e a cco u n t t o re a c h 194, 000 in 11 ye a rs ?

Principal : 95086.56

Schritte zur Lösung

Translate the problem into an equation:

194000 = P (1 + \frac{0.065}{12})^{12 \cdot 11}

Löse nach

P, 194000 = P (1 + \frac{0.065}{12})^{12 \cdot 11} : P = 95086.56

Principal : 95086.56