Willie F. answered • 01/30/21

MBA in Business with over 25+ years of training and teaching.

The formula to use = A =P(1+R/N)^{N*T}

^{Given:}

^{A = Final Amount = $ 300,000}

^{P= Initial Investment = P}

^{R= Interest rate = 5%}

^{N = Number of Compound periods = 1}

^{T= Time = 7 years}

^{Solution:}

A =P(1+R/N)^{N*T}

$300,000 = P (1+.05/1) ^{1*7}

$300,000 = P (1.05) ^{7 }

$300,000 = P (1.4071)

__$300,000__ = P

1.4071

Answer P = $ 213,204.46