In the table below,P represents the initial investment. please help

Question

In the table below, P represents the initial investment. Complete the table below giving the amount P that must be invested at interest rate 8.5 % compounded monthly to obtain a balance of A = $ 70000 in t years.

Round your answer to the nearest cent or two decimal places.

Answer 1

Hi Latasha

Your Question: In the table below, P represents the initial investment. Complete the table below giving the amount P that must be invested at interest rate 8.5 % compounded monthly to obtain a balance of A = $ 70000 in t years.

Round your answer to the nearest cent or two decimal places.

A = P (1 + r/n)^nt

P = Principal

r = rate

n = Number of times compounded in a year

t = time in years

For your problem,

A = 70000

r = 8.5% (So in the formula you use 0.085)

n = 12 ( compounded monthly is 12 times a year)

I don't see a table, so I'll just choose the values for t = 1, 5, 10, 20 years

If t = 1 Then

70,000 = P (1 + 0.085/12)¹²⁽¹⁾

70000/ (1 + 0.085/12)¹²⁽¹⁾ = P

P = $64,315.13

If t = 5

70000/ (1 + 0.085/12)¹²⁽⁵⁾ = P = 45,832.50

t = 10

70000/ (1 + 0.085/12)¹²⁽¹⁰⁾ = P = 30,008.83

t = 20

70000/ (1 + 0.085/12)¹²⁽²⁰⁾ = P = 12,864.71

Hope this helps!