Answer:
[tex]\$17,846.12[/tex]
Step-by-step explanation:
we know that
The compound interest formula is equal to
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]
where
A is the Final Investment Value
P is the Principal amount of money to be invested
r is the rate of interest in decimal
t is Number of Time Periods
n is the number of times interest is compounded per year
in this problem we have
[tex]t=10\ years\\ A=\$20,000\\ r=0.0114\\n=12[/tex]
substitute in the formula above
[tex]\$20,000=P(1+\frac{0.0114}{12})^{12*10}[/tex]
[tex]P=\$20,000/[(1+\frac{0.0114}{12})^{120}][/tex]
[tex]P=\$17,846.12[/tex]
