Answer:
$272559.70
Step-by-step explanation:
So, let's start with what we know
This problem should be solved with the formula
A = P ( 1 + r/n)^nt
The variable A is the final amount
A = 3000000
This is the amount we want to achieve
The variable P is the principle, the amount of money you put in a bank to earn interest
We have to solve for this value
The variable r is the interest rate
r = 0.065
Note: I converted the percent to a decimal, so we can use it in the formula
The variable n is the amount of times interest is compounded
n = 12
The interest is compounded monthly in a year, so 12 times
The variable t is the amount of time you have to earn the interest
t = 37
So, let's solve for the value P with the values we know
3000000 = P ( 1 + 0.065/12)^(12x37)
3000000 = P(11.0067628047)
3000000 / 11.0067628047 = P(11.0067628047) / 11.0067628047
272559.702905 = P
P = 272559.70
Note: I rounded to the nearest cent, since there isn't a value of USD lower than 1 cent.
So, there you have it, a principle of 272559.70 will get you 3000000 in 37 years given that interest is compounded monthly at 6.5% interest rate
If you have any questions, please let me know in the comments section of this answer! If you could mark this answer as the brainliest, I would greatly appreciate it!
