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(1 point) Find the principal needed to get $1500 in 3 years at 9% compounded monthly. Principal =$

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Answer:

To find the principal needed to accumulate $1500 in 3 years at a 9% interest rate compounded monthly, we can use the formula for compound interest:

A = P(1 + r/n)^(nt)

Where:

A = Future value (amount we want to accumulate) = $1500

P = Principal (amount we need to find)

r = Annual interest rate = 9% = 0.09

n = Number of times interest is compounded per year = 12 (monthly compounding)

t = Number of years = 3

Plugging in the values, we have:

$1500 = P(1 + 0.09/12)^(12 * 3)

Simplifying:

$1500 = P(1.0075)^(36)

To solve for P, we divide both sides of the equation by (1.0075)^(36):

P = $1500 / (1.0075)^(36)

Using a calculator, we can evaluate the right side of the equation to find the principal P:

P ≈ $1225.34

Therefore, the principal needed to accumulate $1500 in 3 years at 9% compounded monthly is approximately $1225.34.

Explanation:

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