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20 October, 12:43

What annual investment is required at 8% per year compounded annually to accumulate to $100,000 at the end of 20 years?

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  1. 20 October, 13:04
    0
    P = $ 38,461.54

    Equation:

    P = A / (1 + rt)

    Calculation:

    First, converting R percent to r a decimal

    r = R/100 = 8%/100 = 0.08 per year,

    then, solving our equation

    P = 100000 / (1 + (0.08 * 20)) = 38461.538461538

    P = $ 38,461.54

    The principal investment required to get

    a total amount, principal plus interest, of $ 100,000.00

    from simple interest

    at a rate of 8% per year

    for 20 years is $ 38,461.54.
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