William is going to invest in an account paying an interest rate of 5.5% compounded monthly. How much would William need to invest, to the nearest hundred dollars, for the value of the account to reach 980 in 7 years?

Solución

Solución

Principal : 667.43

Pasos de solución

Translate the problem into an equation:

980 = P (1 + \frac{0.055}{12})^{12 \cdot 7}

Resolver para

P, 980 = P (1 + \frac{0.055}{12})^{12 \cdot 7} : P = 667.43

Principal : 667.43

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