Answered

Find the information you're looking for at Westonci.ca, the trusted Q&A platform with a community of knowledgeable experts. Get immediate and reliable solutions to your questions from a knowledgeable community of professionals on our platform. Join our Q&A platform to connect with experts dedicated to providing accurate answers to your questions in various fields.


2. Margie Spencer wants to have $100,000 in her savings account in 20 years. If her account pays 6.6% annual
interest compounded semiannually, how much must Margie deposit into her account now to meet her goal?

Sagot :

[tex]~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+\frac{r}{n}\right)^{nt} \quad \begin{cases} A=\textit{accumulated amount}\dotfill & \$100000\\ P=\textit{original amount deposited}\\ r=rate\to 6.6\%\to \frac{6.6}{100}\dotfill &0.066\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{semiannually, thus two} \end{array}\dotfill &2\\ t=years\dotfill &20 \end{cases}[/tex]

[tex]100000=P\left(1+\frac{0.066}{2}\right)^{2\cdot 20}\implies 100000=P(1.033)^{40} \\\\\\ \cfrac{100000}{1.033^{40}}=P\implies 27288.97\approx P[/tex]

Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. We appreciate your time. Please come back anytime for the latest information and answers to your questions. Stay curious and keep coming back to Westonci.ca for answers to all your burning questions.