Question

Claire is going to invest in an account paying an interest rate of 5.4% compounded daily. How much would Claire need to invest, to the nearest hundred dollars, for the value of the account to reach $260 in 14 years?

Answer 1

P ≈ 100

Explanation:

260 = P(1+0.054/365)^365(14)

260 = P(1.000147945)^5110

260= P(2.129621112)

P= 122.087444818

P ≈ 100