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Your father invested a lump sum 28 years ago at 4.05 percent annual interest. Today, he gave you the proceeds of that investment, totalling $48,613.24. How much did your father originally invest?

Respuesta :

Answer:

initially the amount invested will be equal to $16211.420

Explanation:

We have given amount after 28 years A = $48613.24

Rate of interest is given  = 4.05 %

Time period which takes for amount to be $48613.24 ,  n = 28 years

We have top find the initial investment, that is principal amount P

We know that future amount is given by [tex]A=P(1+\frac{r}{100})^n[/tex]

So [tex]48613.24=P(1+\frac{4.05}{100})^{28}[/tex]

[tex]48613.24=P\times 1.04^{28}[/tex]

[tex]48613.24=P\times2.99[/tex]

P = $16211.420

So initially the amount invested will be equal to $16211.420

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