226k views
0 votes
Lonnie is considering doing some long term investing with money that she inherited. She would like to have $50,000 at the end of 30 years. Approximately how much money would Lonnie need to put into an account earning 6% interest compounded annually in order to meet her goal? a. $8,706 b. $9,000 c. $27,778 d. $40,690

User Akay
by
6.0k points

2 Answers

3 votes

Answer:

It's A-$8,706 :))

Explanation:

User SamuelDavis
by
5.1k points
4 votes

Answer:

$8,706

Explanation:

Lionnel is considering doing some long term investments with the money she inherited

She would like to have $50,000 at the end of 30 years

The interest is 6%

Therefore the amount that Lionnel would need to put into the account can be calculated as follows

A= P(1+r)^t

50,000 = P(1+6/100)^30

50,000 = P (1+0.06)^30

50,000 = P(1.06)^30

50,000= 5.7434P

P = 50,000/5.7434

P= $8,706

Hence Lionnel will need to put $8,706 into an account earning 6% interest

User Valvoline
by
5.7k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.