Question
Barbara knows that she will need to buy a new car in 4 years. The car will cost $15,000 by then. How much should she invest now at 8%, compounded quarterly, so that she will have enough to buy a new car?
Group of answer choices
$10,926.75
$11,907.48
$12,822.06
$10,208.75
Group of answer choices
$10,926.75
$11,907.48
$12,822.06
$10,208.75
Answers
R_scott
a * [1 + (.08 / 4)]^(4 * 4) = 15000
log(a) + 16 log(1.02) = log(15000)
or ... a = 15000 / (1.02^16)
log(a) + 16 log(1.02) = log(15000)
or ... a = 15000 / (1.02^16)