How much money should be deposited today in an account that earns 7.5% compounded monthly so that it will accumulate to $11,000 in three years? Click the icon to view some finance formulas. The amount of money that should be deposited is $ (Round up to the nearest cent.) ...

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter7: Exponents And Exponential Functions
Section: Chapter Questions
Problem 69SGR
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Question
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How much money should be deposited today in an account that earns 7.5% compounded monthly so that it will
accumulate to $11,000 in three years?
Click the icon to view some finance formulas.
The amount of money that should be deposited is $
(Round up to the nearest cent.)
Transcribed Image Text:How much money should be deposited today in an account that earns 7.5% compounded monthly so that it will accumulate to $11,000 in three years? Click the icon to view some finance formulas. The amount of money that should be deposited is $ (Round up to the nearest cent.)
Formulas
In the provided formulas, A is the balance in the account after t years, P is the
principal investment, r is the annual interest rate in decimal form, n is the number
of compounding periods per year, and Y is the investment's effective annual yield
in decimal form.
r
A=P(1+A)"
nt
P =
A
+
nt
A = Pert
Y =
n
I
<
Transcribed Image Text:Formulas In the provided formulas, A is the balance in the account after t years, P is the principal investment, r is the annual interest rate in decimal form, n is the number of compounding periods per year, and Y is the investment's effective annual yield in decimal form. r A=P(1+A)" nt P = A + nt A = Pert Y = n I <
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