Cindy plans to invest for 10 years at 1.5%, compounded annually. If she hopes to have $10,000 after 10 years, how much will she need to invest initially?

Question

asked Nov 28, 2021 217k views

1 Answer

← Prev Question Next Question →

Ask a Question

Kplus · Answer 1 · 2021-12-03T02:46:57+0000

Answer:

Use the formula for calculating compound interest PN=P0(1+rk)Nk where P0 is the unknown, PN=10,000, N=10, k=1, and r=0.015. Substitute the values into the formula and simplify.

10000=P(1+0.0151)1⋅10

10000=P(1.015)10

10000=P(1.16054...)

8616.67=P

Therefore, rounded to the nearest dollar, the initial investment needs to be $8617 to have $10,000 in 10 years.

Explanation:

Cindy plans to invest for 10 years at 1.5%, compounded annually. If she hopes to have $10,000 after 10 years, how much will she need to invest initially?

Please log in or register to add a comment.

Please log in or register to answer this question.

1 Answer

Please log in or register to add a comment.

No related questions found

Categories

Other Questions

Cindy plans to invest for 10 years at 1.5%, compounded annually. If she hopes to have $10,000 after 10 years, how much will she need to invest initially?​

Please log in or register to add a comment.

Please log in or register to answer this question.

1 Answer

Please log in or register to add a comment.

No related questions found

Categories

Other Questions

Cindy plans to invest for 10 years at 1.5%, compounded annually. If she hopes to have $10,000 after 10 years, how much will she need to invest initially?