Lakisha just won some money in a sweepstakes drawing. She is considering putting her winnings in a long term investment. To the nearest dollar, how much money would Lakisha need to put into an account earning 5% interest compounded annually in order to have $30,000 at the end of 20 years?

Question

Deacon

5 September, 03:41

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Answers (1)

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Andrew Willis · Answer 1

Amount after n years = original amount x interest^ (number of years)

30,000 = A x (1.05) ²⁰

A = $11,307