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
