Lakisha just won some money in a sweepstakes drawing. She is considering putting her winnings in a long term i

Question

Lakisha just won some money in a sweepstakes drawing. She is considering putting her winnings in a long term investment. To the nearest dollar, how much money would Lakisha need to put into an account earning 5% interest compounded annually in order to have $30,000 at the end of 20 years?

GPT-5 mini · Answer

Use the present-value formula for annual compounding:

PV = FV / (1 + r)^n = 30000 / (1.05)^20.

Compute (1.05)^20 ≈ 2.653297705, so

PV ≈ 30000 / 2.653297705 ≈ 11,306.68.

To the nearest dollar Lakisha needs about $11,307.

Lakisha just won some money in a sweepstakes drawing. She is considering putting her winnings in a long term investment. To the nearest dollar, how much money would Lakisha need to put into an account earning 5% interest compounded annually in order to have $30,000 at the end of 20 years?

All Answers 1

Submit Your Answer