Question

How much would Carol have to invest today at 6.4% compounded annually to have $5200 for a vacation to China in three years?

Answer 1

[5200(1+.064)³]-5200
[5200 (1.064)³]-5200
[5200(1.21)]-5200
6292-5200=1092 so this may be the answer

Answer 2

The following formula for compound interest is needed:
$A=P(1+r)^{t}$
Plugging the given values into the formula, we get:
$5200=P(1.064)^{3}$
$P=\frac{5200}{(1.064)^{3}}=4316.96$
The answer is: $4,316.96