Question

Darlene Fine wants to have at least $50,000 in her savings account in 10 years. If her account pays 3.6% interest compounded annually, what should Darlene's initial investment be if she plans to keep the account without making deposits or withdrawals?

Answer 1

Hey,you will need to use a formula

\[A=P(1+\frac{ r }{ 100 })^{n}\]

A-amount of money accumulated after n years, including interest.
P-principal amount (the initial amount you borrow or deposit)
r-annual rate of interest
n-number of years

So you know that A=$50,000
r=3.6 and n=10,so:
\[50,000=P(1+0.036)^{10}\]
All you need to do now,is solve the equation

Answer 2

thank you (: