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% compounde

Question

mario62 [17]

3 years ago

11

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% compounde

d semiannually to have the funds needed?

Mathematics

1 answer:

dezoksy [38] · Answer 1 · 2021-11-23T13:22:49+03:00

dezoksy [38]3 years ago

4 0

The formula is
A=p (1+r/k)^kt
A fund needed 30000
p Amount invested?
R interest rate 0.1
K compounded semiannual 2
T time 1 year
Solve the formula for p to get
P=A÷(1+r/k)^kt
P=30,000÷(1+0.1÷2)^(2×1)
P=27,210.88