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Concept explainers
To find : the principal P.
![Check Mark](/static/check-mark.png)
Answer to Problem 14E
The initial investment is
Explanation of Solution
Given information : Amount available for retirement is $500,000, rate of interest is 3.5% and duration of investment is 15 years
Concept Involved:
Solving for a variable means getting the variable alone in one side of the equation by undoing whatever operation is done to it.
Formula Used:
For periodic compounding, after t years, the balance A in an account with principal P, number of times interest applied per time period n and annual interest rate r (in decimal form) is given by the formula:
Calculation:
Description | Steps |
Substitute the given information in the formula | |
Use symmetric property of equality which states that if a = b then b = a to rewrite the equation | |
Simplifying the left side of the equation |
Calculation (Continued):
Description | Steps |
Divide by | |
Simplify fraction on both sides |
Conclusion:
The principal $296004 should be invested at rate of 3.5%, compounded monthly, so that $500,000 will be available for retirement in 15 years
Chapter 3 Solutions
EBK PRECALCULUS W/LIMITS
- Calculus: Early TranscendentalsCalculusISBN:9781285741550Author:James StewartPublisher:Cengage LearningThomas' Calculus (14th Edition)CalculusISBN:9780134438986Author:Joel R. Hass, Christopher E. Heil, Maurice D. WeirPublisher:PEARSONCalculus: Early Transcendentals (3rd Edition)CalculusISBN:9780134763644Author:William L. Briggs, Lyle Cochran, Bernard Gillett, Eric SchulzPublisher:PEARSON
- Calculus: Early TranscendentalsCalculusISBN:9781319050740Author:Jon Rogawski, Colin Adams, Robert FranzosaPublisher:W. H. FreemanCalculus: Early Transcendental FunctionsCalculusISBN:9781337552516Author:Ron Larson, Bruce H. EdwardsPublisher:Cengage Learning
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