Question

Which equations gives the amount P that should be invested at 8% per annum , compounded annually, so that $2000 will be available after 7 years? A. P=2000*7^(1.08) b. P=2000(0.08)^7 c. P=2000(1.08)^7 d. P=2000/(0.08)^7 e. P=2000/(1.08)^7

Answer 1

The formula you use is


A = P*(1+r/n)^(n*t)


where,
A = final amount
P = initial amount
r = interest rate in decimal form
n = number of times you compound the money per year
t = number of years

Answer 2

so it's P= 2000/(0.08)^7

Answer 3

`Which equations gives the amount P that should be invested at 8% per annum , compounded annually, so that $2000 will be available after 7 years? `

that info gives
A = 2000
P = unknown
r = 0.08
n = 1
t = 7

Answer 4

`so it's P= 2000/(0.08)^7`

incorrect

Answer 5

Idk then

Answer 6

you were really close but you made a mistake with the 1+r/n part. Try that again

Answer 7

I know its not b or d.. Maybe maybe its c?

Answer 8

sounds like you're randomly guessing at this point

Answer 9

Sorry I meant a, cause 8% can't be 1.08.. Right..?

Answer 10

notice how 1+r/n = 1+0.08/1 = 1.08

Answer 11

another hint: solve for P in A = P*(1+r/n)^(n*t)

so you'll have \[\LARGE P = \frac{A}{(1+r/n)^{n*t}}\]

Answer 12

Oh so.. E then..?

Answer 13

A = 2000
P = unknown
r = 0.08
n = 1
t = 7
\[\LARGE P = \frac{A}{(1+r/n)^{n*t}}\]
\[\LARGE P = \frac{2000}{(1+0.08/1)^{1*7}}\]
\[\LARGE P = \frac{2000}{1.08^{7}}\]

Answer 14

yeah E