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

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

Eiwoh2 · Answer

Well, math dosen't seem to be my strong suit, but if you come back, perhaps you can tell us your guess for the choice?

Marziman · Answer

Easy easy easy. Answer is 9,481.16

Eiwoh2 · Answer

@Ultrilliam Since user seems to not be online, can you close the question?

Eiwoh2 · Answer

Question has been answered.

Marziman · Answer

It's all interest rate. Simple formula, you could plug each individual option into the formula OR you could use an alternate formula.

Marziman · Answer

Take the principal amount, divide it by the interest plus 1 and then multiply it to the power of time.

Marziman · Answer

Soooo P / (1+i)^t 
25,000 / (1+.06)^16.

Eiwoh2 · Answer

All right. NOW the question has been answered. If user comes back (probably not), he will get his answer. Until then, who is gonna close it?

Eiwoh2 · Answer

Ultri e.e