3) Yaling decides that she wants to purchase a car in 5 years that will cost her $25,000. She is going to invest money today at a 3% interest rate from her local bank. The bank pays the interest monthly. How much does Yaling need to invest today in order to have $25,000 in five year
We use the formula:
A=P(1+r/12)^12n
where
A=future value
P=present value
r=rate of interest
n=time period.
25000=P*(1+0.03/12)^(12*5)
P=25000/(1+0.03/12)^(12*5)
=25000*0.860869105
=$21521.73(Approx).
3) Yaling decides that she wants to purchase a car in 5 years that will cost...
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Jane Roznowski wants to invest some money now to buy a new tractor in the future. If she wants to have $325,000 available in 5 years, how...
here's the solution for the problem but still not
coming up with the answer. how to calculate the problem on
calculator?
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