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How much money should be invested in an account that earns 9% interest, compounded monthly, in order to have $15,000 in 4years? (Round your answer to two decimal places.)

How much money should be invested in an account that earns 9% interest, compounded monthly, in order to have $15,000 in 4years? (Round your answer to two decimal places.)

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How much money should be invested in an account that earns 9% interest, compounded monthly, in order to have $15,000 in 4years? (Round your answer to two decimal places.)

Expert Solution
Step 1: Compound interest formula

For compound interest, we have the formula 

                         A = P open parentheses 1 plus r over n close parentheses to the power of n t end exponent 

 where  A = amount after  t  years = 15,000

             P = Principal

             r = interest per year = 9 percent sign= 0.09

             n = number of times compounded per                         year = 12

             t = number of years = 4

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