Question

You invest money at 6% interest compounded annually for 3 years. If the future value of your investment is $1800, how much money did you invest? Show your work.

Answer 1

Explanation:

FV = P(1+r)^t

1800 = P(1+0.06)^3

1800 = P(1.06)^3

P = 1800/(1.06)^3 = $1511