The principal investment required to get a total amount of $20,000.00 from compound interest at a rate of 4.75% per year compounded 12 times per year over 20 years is $7,749.34
Given data
Principal =?
Final amount = $20,000
rate = 4.75%
Time = 20 years
First, convert R as a percent to r as a decimal
r = R/100
r = 4.75/100
r = 0.0475 per year,
Then, solve the equation for P
P = A / (1 + r/n)^(nt)
P = 20,000.00 / (1 + 0.0475/12)^(12)(20)
P = 20,000.00 / (1 + 0.003958333)^(240)
P = $7,749.34
Learn more about Compounding interest at:
https://brainly.com/question/1570054
