Question

Noah is going to invest in an account paying an interest rate of 3.7% compounded

annually. How much would Noah need to invest, to the nearest hundred dollars, for
the value of the account to reach $1,110 i 13 years?

Answer 1

P≈ 700

Explanation:

Answer 2

Answer: $700

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Work Shown:

A = 1110 = final amount

r = 0.037 = decimal form of the interest rate

n = 1 = compounding frequency (annual)

t = 13 = time in years

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A = P(1+r/n)^(n*t)

1110 = P(1+0.037/1)^(1*13)

1110 = P(1.60370259909214)

1.60370259909214P = 1110

P = 1110/1.60370259909214

P = 692.14828274792

P = 692.15 ....... rounding to the nearest cent

P = 700 .... rounding to the nearest hundred dollars