The value of the account is to reach $34,000 in 13 years with a rate of 3.7 compounded monthly is $ 21,000.
What is compound interest?
Compound interest is the interest on a loan or deposit calculated based on the initial principal and the accumulated interest from the previous period.
Brody is going to invest in an account paying an interest rate of 3.7% compounded monthly.
The rate of interest yearly will be
[tex]\rm Yearly \ rate = \dfrac{3.7}{12}\\\\Yearly \ rate = 0.308 \%[/tex]
The value of the account is to reach $34,000 in 13 years.
Amount (A) = $ 34,000
Time (t) = 13 years
Rate (r) = 0.308 %
Then the principal amount will be
[tex]\begin{aligned} A &= P (1 + \dfrac{r}{100})^{12*t}\\\\34000 &= P (1 + \dfrac{0.308}{100}) ^{13 * 12}\\\\34000 &= P (1.00308)^{156}\\\\P &= 21,044 \approx 21,000 \end{aligned}[/tex]
The principal amount is $21,000.
More about the compound interest link is given below.
https://brainly.com/question/25857212
