Chapter 6.2, Problem 47E

### Calculus (MindTap Course List)

11th Edition
Ron Larson + 1 other
ISBN: 9781337275347

Chapter
Section

### Calculus (MindTap Course List)

11th Edition
Ron Larson + 1 other
ISBN: 9781337275347
Textbook Problem

# Compound Interest In Exercises 45-48, Find the principal P that must be invested at rate r, compounded monthly, so that $1,000,000 will be available for retirement in t years. r = 8 % , t = 35 To determine To calculate: The principal P which has to be invested at the rate r so that$1,000,000 be available for retirement in t years.

Explanation

Given:

Interest compounded monthly with r=8% and t=35 years

Formula used:

We can use the formula for amount:

A=P(1+r100)t

Calculation:

Let us consider the given expression A=P(1+r100)t.

We know if the interest is compounded monthly, t=12t and r=r12

Hence,

A=P(1+r12100)12t=P(1+r1200)12t

By putting r=6, t=40 and A=1000000</

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