Compound interest application
compound interest is given by the formula a = p ( 1 + r ) t . where a is the balance of the account after t years, and p is the starting principal invested at an annual percentage rate of r , expressed as a decimal.
wyatt is investing money into a savings account that pays 2% interest compounded annually, and plans to leave it there for 15 years. determine what wyatt needs to deposit now in order to have a balance of $40,000 in his savings account after 15 years.
wyatt will have to invest $ now in order to have a balance of $40,000 in his savings account after 15 years. round your answer up to the nearest dollar.

$29,721

Step-by-step explanation:

We have been given that Wyatt is investing money into a savings account that pays 2% interest compounded annually, and plans to leave it there for 15 years. We are asked to find the amount deposited by Wyatt in order to have a balance of $40,000 in his savings account after 15 years.

We will use compound interest formula to solve our given problem.

, where,

A = Final amount after T years,

P = Principal amount,

r = Annual interest rate in decimal form,

n = Number of times interest is compounded per year,

T = Time in years.

Let us convert our given interest rate in decimal form.

Upon substituting our given values in compound interest formula, we will get:

Switch sides:

Upon rounding our answer to nearest dollar, we will get:

Therefore, Wyatt will have to invest $29,721 now in order to have a balance of $40,000 in his savings account after 15 years.

on friday there were 15 birds