Asked by Max
Jessica plans to purchase a car in one year at a cost of $30,000. How much should be invested in an account paying 10% compounded semiannually to have the funds needed.
a. $27,210.90
b. $3,512.06
c. $24,793.50
d. $27,272.70
The Lee family plans to buy a new house in 2 years and wants to make a down payment of 25% of the estimated purchases price of $175,000. Find the amount they need to invest to make the down payment if funds earn 12% compounded semiannually.
a. $125,961.20
b. $34,653.94
c. $43,750
d. $138,615.75
Please help, show how you got the answers I get a better understanding. I have other questions like these. (These are example questions)
a. $27,210.90
b. $3,512.06
c. $24,793.50
d. $27,272.70
The Lee family plans to buy a new house in 2 years and wants to make a down payment of 25% of the estimated purchases price of $175,000. Find the amount they need to invest to make the down payment if funds earn 12% compounded semiannually.
a. $125,961.20
b. $34,653.94
c. $43,750
d. $138,615.75
Please help, show how you got the answers I get a better understanding. I have other questions like these. (These are example questions)
Answers
Answered by
Steve
just refer to your compound interest formula.
#1: solve for P where
P(1+.10/2)^(2*1) = 30000
P = 27210.88
#2: same thing
P(1+.12/2)^(2*2) = .25*175000
#1: solve for P where
P(1+.10/2)^(2*1) = 30000
P = 27210.88
#2: same thing
P(1+.12/2)^(2*2) = .25*175000
There are no AI answers yet. The ability to request AI answers is coming soon!
Submit Your Answer
We prioritize human answers over AI answers.
If you are human, and you can answer this question, please submit your answer.