Question

How much money should be invested every year with 4% interest per year in order to save up $26,000 in 18 years?

Answer 1

$15116.28

Explanation:

Given data:

interest rate, r= 4%

time, t= 18 years

Final investment, A= $26000

Principle investment, P=?

As per the formula of interest

A= P (1+rt)

Putting the values:

26000= P(1+ 0.04(18))

P= 26000/(1+ 0.04(18))

P= 15116.28 !