In order to have 1 million dollars in 40 years with an annual interest rate of 11.6%, I will have to invest $_ (round to the nearest 1000) a 12,000 b 13,000 c 14,000 d 15,000
To solve the problem we use the compound formula given by: A=p(1+r/100)^n where: A=future amount: p=principle r=rate A=1000000, r=11.6%, n=40 plugging the value in the formula we get: 1000000=p(1+11.6/100)^40 solving for p we get: 1000000=80.6432p p=12400.300 rounding to the nearest 1000 we get p=$12000 Answer: A.) 12,000
