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Julia is going to invest in an account paying an interest rate of 3.7% compounded daily. How much would Julia need to invest, , for the value of the account to reach $3,700 in 13 years?

Respuesta :

samuelonum1

The principal investment required to get a total amount of $3,700.00 from compound interest at a rate of 3.7% per year compounded 365 times per year over 13 years is $2,287.26.

Given Data

Rate = 3.7%

Final Amount = $3,700

Time = 13 Years

First, convert R as a percent to r as a decimal

r = R/100

r = 3.7/100

r = 0.037 per year,

Then, solve the equation for P

P = A / (1 + r/n)^nt

P = 3,700.00 / (1 + 0.037/365)(365)^(13)

P = 3,700.00 / (1 + 0.00010137)^(4745)

P = $2,287.26

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