+157 How much money should be invested now (rounded to the nearest cent), called the initial investment, in a Government Bond investment that yields 7% per year, compounded monthly for 10 years, if you wish it to be worth $25,000 after 10 years?
Hint: where A(t) is the final amount, A0 is the initial investment, r is the growth rate expressed as a decimal amount, and t is time in years.
A. $12,708.73
B. $2,675.00
C. $12,439.91
D. $50,241.53
+2592 We can automatically rule out B because it is far to low and D because it is twice over your target.
Let use plug and simplify to find the A0 or initial investment
25000=x(1.00583)^(120)
25000/(1.00583)^(120) = 12444.85
So rounding, we can assume it is C
+2592 We can automatically rule out B because it is far to low and D because it is twice over your target.
Let use plug and simplify to find the A0 or initial investment
25000=x(1.00583)^(120)
25000/(1.00583)^(120) = 12444.85
So rounding, we can assume it is C
