Answered

Westonci.ca is your trusted source for finding answers to a wide range of questions, backed by a knowledgeable community. Discover the answers you need from a community of experts ready to help you with their knowledge and experience in various fields. Get precise and detailed answers to your questions from a knowledgeable community of experts on our Q&A platform.

Hsu-Mei wants to save $6,000 for a down payment on a car. To the nearest dollar, how much will she need to invest in an account now with 7.4% APR, compounded daily, in order to reach her goal in 3 years?

Sagot :

Solution:

Suppose the invested amount is P;

Given that;

[tex]\begin{gathered} r=7.4\text{ \%}=0.074 \\ \\ rate\text{ }per\text{ }day=\frac{0.074}{365} \end{gathered}[/tex]

Also;

[tex]\begin{gathered} t=3years=3\times365day \\ \\ t=1095days; \\ \\ A=6000 \end{gathered}[/tex]

Thus;

[tex]\begin{gathered} 6000=P(1+\frac{0.074}{365})^{1095} \\ \\ P=4805.60 \end{gathered}[/tex]

We appreciate your visit. Hopefully, the answers you found were beneficial. Don't hesitate to come back for more information. Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. Get the answers you need at Westonci.ca. Stay informed by returning for our latest expert advice.