The compound interest formula can be rewritten as $P = \frac { A } { ( 1 + r / n ) ^ { n t } }$ Find the principal amount $P$ that could have been invested on the day you were born at 4.5% annual interest compounded monthly to make you a millionaire on your 21st birthday.
A)$243,354.47
B)$389,367.15
C)$292,025.36
D)$194,683.58
E)$316,360.81

Question

Quizplus · Accepted Answer

The Answer of The compound interest formula can be rewritten as $P = \frac { A } { ( 1 + r / n ) ^ { n t } }$ Find the principal amount $P$ that could have been invested on the day you were born at 4.5% annual interest compounded monthly to make you a millionaire on your 21st birthday.
A)$243,354.47
B)$389,367.15
C)$292,025.36
D)$194,683.58
E)$316,360.81

The Compound Interest Formula Can Be Rewritten As P=A(1+r/n)ntP = \frac { A } { ( 1 + r / n ) ^ { n t } }P=(1+r/n)ntA​

The Compound Interest Formula Can Be Rewritten As $P = \frac { A } { ( 1 + r / n ) ^ { n t } }$