To solve this problem, we need to use the formula for compound interest, which is:

A = P (1 + r/n)^(nt)

Where:
A = the amount of money accumulated after n years, including interest.
P = the principal amount (the initial amount of money)
r = annual interest rate (in decimal)
n = number of times that interest is compounded per year
t = time the money is invested for in years

We know that A = $36,800, r = 1.62% or 0.0162 in decimal form, n = 12 (since the interest is compounded monthly), and t = 6 years. We want to find P.

Rearranging the formula to solve for P gives us:

P = A / (1 + r/n)^(nt)

Substituting the known values gives us:

P = $36,800 / (1 + 0.0162/12)^(12*6)

Now, we just need to calculate the right-hand side to find P.

P = $36,800 / (1 + 0.00135)^(72)

P = $36,800 / 1.093443

P = $33,643.47

So, Mai would need to invest approximately $33,643.47 to have $36,800 after 6 years with an interest rate of 1.62% compounded monthly.

Question

To solve this problem, we need to use the formula for compound interest, which is:

A = P (1 + r/n)^(nt)

Where:
A = the amount of money accumulated after n years, including interest.
P = the principal amount (the initial amount of money)
r = annual interest rate (in decimal)
n = number of times that interest is compounded per year
t = time the money is invested for in years

We know that A = $36,800, r = 1.62% or 0.0162 in decimal form, n = 12 (since the interest is compounded monthly), and t = 6 years. We want to find P.

Rearranging the formula to solve for P gives us:

P = A / (1 + r/n)^(nt)

Substituting the known values gives us:

P = $36,800 / (1 + 0.0162/12)^(12*6)

Now, we just need to calculate the right-hand side to find P.

P = $36,800 / (1 + 0.00135)^(72)

P = $36,800 / 1.093443

P = $33,643.47

So, Mai would need to invest approximately $33,643.47 to have $36,800 after 6 years with an interest rate of 1.62% compounded monthly.

Knowee AI · Accepted Answer