If you are able to earn an 8% rate of return, what amount would you need to invest to have $30,000 one year from now?

Question

Quizplus · Accepted Answer

To find out the amount you would need to invest, we can use the formula: 
Amount = (Initial amount) x (1 + rate of return)
Plugging in the given values, we get:
$30,000 = (Initial amount) x (1 + 0.08)
Simplifying this equation, we get:
Initial amount = $27,777.78
Rounding up to the nearest dollar, the answer is choice B: $27,778.

If You Are Able to Earn an 8% Rate of Return