Mathematics: Jane wishes to have 20,000 available at the end of 10 years so she deposit money into an account that pays 1.14% compounded monthly how much does she need to deposit in order to meet this goal?

I think it is 3,not sure check online just in case. Always helps to check ;-)...

Jane wishes to have 20,000 available at the end of

zel990252

15.01.2022

$\$17,846.12$

Step-by-step explanation:

we know that

The compound interest formula is equal to

$A=P(1+\frac{r}{n})^{nt}$

where

A is the Final Investment Value

P is the Principal amount of money to be invested

r is the rate of interest in decimal

t is Number of Time Periods

n is the number of times interest is compounded per year

in this problem we have

$t=10\ years\\ A=\$20,000\\ r=0.0114\\n=12$

substitute in the formula above

$\$20,000=P(1+\frac{0.0114}{12})^{12*10}$

$P=\$20,000/[(1+\frac{0.0114}{12})^{120}]$

$P=\$17,846.12$

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