In order to have 1 million dollars in 40 years with an annual interest rate of 11.6%, I will have to invest $_ (round to the nearest 1000) a 12,000 b 13,000 c 14,000 d 15,000

A.) 12,000

B.) 13,000

C.) 14,000

D.) 15,000

To solve the problem we use the compound formula given by:

A=p (1+r/100) ^n

where:

A=future amount:

p=principle

r=rate

A=1000000, r=11.6%, n=40

plugging the value in the formula we get:

1000000=p (1+11.6/100) ^40

solving for p we get:

1000000=80.6432p

p=12400.300

rounding to the nearest 1000 we get

p=$12000

Answer:

A.) 12,000