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djverab [1.8K]
2 years ago
4

How much money would need to be deposited into an account earning 5.25% interest compounded annually in order for the accumulate

d value at the end of 25 years to be $75,000? a. $20,243.85 b. $20,869.34 c. $57,142.86 d. $67,245.61
Mathematics
1 answer:
bija089 [108]2 years ago
4 0
A = P(1 + r)^t
A = amount in the account after specified period of time
P = principle
r = rate (change to decimal)
t = time in years

75,000 = P(1 + .0525)^25
75,000 = P(1.0525)^25
75,000/(1.0525)^25 = P
P = $20,869.34
LETTER B
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