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Ksju [112]
3 years ago
12

Jane Roznowski wants to invest some money now to buy a new tractor in the future. If she wants to have ​$250,000 available in 4

​years, how much does she need to invest now in a CD paying 4.45​% interest compounded monthly​?
Mathematics
2 answers:
Aleks [24]3 years ago
7 0

Answer:

In a CD paying 4.45​% interest compounded monthly, to get 250.000$ after 4 years. Assume the amount she invests is A.

=> A x (1 + 4.45/100)^4 = 250000

=> A  x 1.19 = 250000

=> A = 250000/1.19 = 210084 dollar

Hope this helps!

:)

Mazyrski [523]3 years ago
5 0

Answer:

P = A(1+r/n)nt

225,000 = A(1+.0495/12)12(5)

225,000 = A(1+.001625)60

225,000 = A(1.001625)60

225,000 = A(1.102324208)

$204,114.18 = A

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