Answer
They would have to invest $40,733.
Work Step by Step
APR = 5% compounded monthly
A = P(1+$\frac{r}{n})^{nt}$
100,000 = P(1+$\frac{.05}{12})^{12x18}$
P = 40,733
Calculus Concepts: An Informal Approach to the Mathematics of Change 5th Edition
by LaTorre, Donald R.; Kenelly, John W.; Reed, Iris B.; Carpenter, Laurel R.; Harris, Cynthia R.
Published by
Brooks Cole
ISBN 10:
1-43904-957-2
ISBN 13:
978-1-43904-957-0
Chapter 1 - Ingredients of Change: Functions and Limits - 1.6 Activities - Page 64: 12
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