9514 1404 393
Answer:
$1512.27
Step-by-step explanation:
The future value formula for monthly compounded interest is ...
FV = P(1 +r/12)^(12t) . . . . interest rate r for t years
Filling in the given values gives ...
2000 = P(1 +0.04/12)^(12·7) = P(1.003333...)^84 = 1.322513864P
Then the required principal is ...
P = 2000/1.322513864 ≈ 1512.27
The principal needed is about $1512.27.
