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

Question

3 years ago

12

years, how much does she need to invest now in a CD paying 4.45% interest compounded monthly?

2 answers:

Aleks [24] · Answer 1 · 2022-07-10T16:48:01+03:00

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] · Answer 2 · 2022-07-10T14:46:37+03:00

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

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