how much money must be deposited now in an account paying 7% annual interest compounded yearly to have a balance of $1000 after 6 years

Question

Mathematics

Nakita

6 July, 19:43

how much money must be deposited now in an account paying 7% annual interest compounded yearly to have a balance of $1000 after 6 years

+4

Answers (1)

Know the Answer?

Giancarlo Morales · Answer 1

Answer: P = $70.42

Step-by-step explanation:

Equation:

P = A / (1 + rt)

Calculation:

First, converting R percent to r a decimal

r = R/100 = 7%/100 = 0.07 per year.

Solving our equation:

P = 100 / (1 + (0.07 * 6)) = 70.422535211268

P = $70.42

The principal investment required to get a total amount, principal plus interest, of $100.00 from simple interest at a rate of 7% per year for 6 years is $70.42.