👤
Answered

Maria has decided to invest to help with her retirement savings. How much would she have to invest to have $113,400 after 20 years, assuming an interest rate of 3.57% compounded annually?
Do not round any intermediate computations, and round your final answer to the nearest dollar.

Maria Has Decided To Invest To Help With Her Retirement Savings How Much Would She Have To Invest To Have 113400 After 20 Years Assuming An Interest Rate Of 357 class=

Answer :

ABU99IN

Answer:

$56,226

Step-by-step explanation:

x = investment

Earning interest of 3.57% is the equivalent of multiplying the initial balance (investment) by 1.0357;

Over 20 years, the new balance can be found by multiplying the initial balance by (1.0357)²⁰;

We can formulate an equation to solve to get the initial investment:

x(1.0357)²⁰ = 113400

(2.01687752)x = 113400

x = ¹¹³⁴⁰⁰/₍₂.₀₁₆...₎

x = 56225.5263 → 56226

In Trainings: Other Questions