What lump sum must be invested at 9%, compounded monthly, for the investment to grow to $72,000 in 6 years?

$42042.50

Step-by-step explanation:

We need to use algebra and equations.

A = P x (1 + (R/n)/100)^nt

our amount (A) is $72K

the number of times we compound the money (n) is 12 (12 months in a year, 'compounded monthly')

our rate (R) is 9 (9%)

our time (t) is 6 (6 years)

we need to find our principal/initial amount (p)

72000 = p x (1 + 0.0075)^12x6

p = $42042.50

answer:

payment just for service  

→

$

87.12

payment for service including tax

→

$

94.09

explanation:

service only with 20% tip  

→

$

72.6

(

1

+

20

100

)

=

$

87.12

in the opening of the question the word 'service' is associated only with the pretax value.

the closing part of the question asks: how much did she pay for the  

service

−−−−−−  

so technically the answer is  

→

$

72.6

(

1

+

20

100

)

=

$

87.12

however, the intention of the question provider may have been that your answer is to be  

$

87.12

(

1

+

8

100

)

=

$

94.09

to 2 decimal places.

'

payment just for service  

→

$

87.12

payment for service including tax

→

$

94.09

tony b

mar 21, 2017

answer:

trying to explain it another way

explanation:

service charge  

.

→

$

72.60

20% tip  

20

100

×

$

72.60

=

$

14.52

−−−−−−  

←

add

$

87.12

tax  

8

100

×

$

87.12

=

$

6.97

−−−−−  

←

add

$

94.09

related questions

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step-by-step explanation: