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
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)
1 answer
2 answers