Answer :

SOLUTION:

Case: Compound interest

Method:

The formula is:

[tex]A=P(1+\frac{r}{n})^{nt}[/tex]

P =?

A= $10 000.00

n = 12

r = 3% or 0.03

t = 16 years

[tex]\begin{gathered} 10000=P(1+\frac{0.03}{12})^{12\times16} \\ 10000=P(1.0025)^{192} \\ 10000=P\times1.6151 \\ P=\frac{10000}{1.6151} \\ P=6191.54 \end{gathered}[/tex]

Final answer: To the nearest cent

She should invest $6191.54

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