How much money would need to be deposited into an account earning 5.75% interest compounded annually in order for the accumulated value at the end of 25 years to be $85,000? a. $75,425.52 b. $59,130.43 c. $21,009.20 d. $20,258.70
Question
Answer:
I will assume you are using compound interest. let the amount invested be x
x(1.0575)^25 = 85000
x = 85000/1.0575^25 = $21,009.20
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10 months ago
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