Determine the Principal P (To the Nearest Cent)that Will Yield

question 29

Multiple Choice

Determine the principal P (to the nearest cent) that will yield a balance of A=2,500,000 dollars when invested at rate r=11% for 40 years, compounded once per year. Round the answer to two decimal places.

• A)$56,306.31
• B)$568,181.82
• C)$68,460.62
• D)$55,625.00
• E)$38,461.03

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Definitions:

Room Temperature

The ambient temperature of a room, typically considered to be about 20 to 22 degrees Celsius (68 to 72 degrees Fahrenheit).

Hydrogen Bonding

A weak bond between two molecules resulting from an electrostatic attraction between a proton in one molecule and an electronegative atom in the other.

Surface Tension

Force that holds moist membranes together due to the attraction of water molecules through hydrogen bonds.

Water Molecules

The smallest unit of water (H2O), consisting of two hydrogen atoms covalently bonded to one oxygen atom, essential for most forms of life on Earth.