en

English

Español

Português

Français

Deutsch

Italiano

Русский

中文(简体)

한국어

日本語

Tiếng Việt

עברית

العربية

Popular Word Problems >

What would you have to invest today at 5% interest compounded monthly if you wish to have 20,000 in 10 years?

Solution

Wha t w o u l d yo u ha v e t o in v es t t o d a y a t 5% in t eres t co m p o u n d e d m o n t h l y i f yo u w i s h t o ha v e 20, 000 in 10 ye a rs ?

Solution

Principal : 12143.22

Solution steps

Translate the problem into an equation:

20000 = P (1 + \frac{0.05}{12})^{12 \cdot 10}

Solve for

P, 20000 = P (1 + \frac{0.05}{12})^{12 \cdot 10} : P = 12143.22

Principal : 12143.22

Popular Examples

Four times the sum of a number and 7 equals 5 Find the final amount of money in an account if \$500 is deposited at 7.5 %interest compounded quarterly and the money is left for 8 years.The quotient of 8 and the cube of a number.The product of 3 and 4 less than a number is-4.The circumference of a circle is 17pi ft. What is the area, in square feet? Express your answer in terms of pipi.