Question

Kate wants to have $25,000 in 16 years. How much does she need to invest if the interest rate is 6 percent per year?
A. $10,431.63
B. $9,841.16
C. $7,353.88
Will fan and medal

Answer 1

hello, do you have any ideas?

Answer 2

not really im stuck?

Answer 3

do you have any formula in this topic?

Answer 4

what do you mean

Answer 5

You can rewrite this equation to read:

PV = FV / ( 1 + i )^t

Plug in your numbers and you would have:

PV = $25,000 / ( 1 + 0.06 )^16
.:
PV = $9,841.16

I think that is how you do it..

Answer 6

thank you

Answer 7

Welcome

Answer 8

But i think i missed a step

Answer 9

it was correct thanks :)

Answer 10

Welcome