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Serga [27]
2 years ago
9

Lakisha just won some money in a sweepstakes drawing. She is considering putting her winnings in a long term investment. To the

nearest dollar, how much money would Lakisha need to put into an account earning 5% interest compounded annually in order to have $30,000 at the end of 20 years?
Mathematics
2 answers:
Natali5045456 [20]2 years ago
7 0

Answer: She would need to put approximately $ 11306.684 into the account in order to have $30,000 at the end of 20 years.

Step-by-step explanation:

Let P be the amount of the money she need to put into the account,

Since, the annual rate of interest = 5%

Time = 20 years

Hence, with this compound interest the amount she got after 20 years,

A=P(1+\frac{5}{100})^{20}

\implies A = P(1+0.05)^{20}\implies A = P(1.05)^{20}

According to the question,

A = $ 30,000

\implies P(1.05)^{20} = 30000

\implies P\times 2.65329770514 = 30000

\implies P = 11306.6844862\approx 11306.684

Hence, She would need to put approximately $ 11306.684 into the account in order to have $30,000 at the end of 20 years

stealth61 [152]2 years ago
6 0
Amount after n years = original amount x interest^(number of years)
30,000 = A x (1.05)²⁰
A = $11,307
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