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How much would you need to invest in an account paying 16%/a compounded annually if you wanted $3900 after 9 years?

Respuesta :

semsee45

Answer:

$1,025.52

Step-by-step explanation:

Annual Compound Interest Formula

[tex]\large \text{$ \sf A=P\left(1+r\right)^{t} $}[/tex]

where:

  • A = Final amount.
  • P = Principal amount invested.
  • r = Interest rate (in decimal form).
  • t = Time (in years).

Given:

  • A = $3,900
  • r = 16% = 0.16
  • t = 9 years

Substitute the given values into the formula and solve for P:

[tex]\implies \sf 3900=P(1+0.16)^9[/tex]

[tex]\implies \sf 3900=P(1.16)^9[/tex]

[tex]\implies \sf P=\dfrac{3900}{(1.16)^9}[/tex]

[tex]\implies \sf P=\dfrac{3900}{3.802961...}[/tex]

[tex]\implies \sf P=1025.51662...[/tex]

Therefore, you would need to invest $1,025.52.

Learn more about annual compound interest here:

https://brainly.com/question/28263709

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