How much must you invest at one time in order to accumulate $18,000 in 12 years at 5% annual interest?

Question

How much must you invest at one time in order to accumulate $18,000 in 12 years at 5% annual interest?

1 Answer

Impact of this question

2026 views around the world

You can reuse this answer
Creative Commons License

Answer 1 · 2018-01-06T23:35:43

Use the geometric sequence formula

Explanation:

We can solve this problem by using the formula $t n = t 1 \cdot r^{n}$ $tn=t1*r^(n)$
where tn is general term, t1 is the first term of the sequence, r is the common ratio, and n is the number of terms.

By plugging the values we have into the formula we'll see that:

$18, 000 = t 1 \cdot {1.05}^{12}$ $18,000 = t1*1.05^(12)$

$18, 000 = t 1 \cdot 1.80$ $18,000 = t1 * 1.80$

$t 1 = 10023.1$ $t1 = 10023.1$

The answer is $10,023.1

Science

Math

Humanities

... and beyond

How much must you invest at one time in order to accumulate $18,000 in 12 years at 5% annual interest?

1 Answer

Explanation:

Related questions

Impact of this question