Question

The manager of a technology store wants to save $20,000 in 3 years to make a down payment on a condominium. How much (in dollars) does the manager need to invest at the beginning of each week into an account that earns 7.25% interest compounded weekly

Answer 1

Answer:

$16,104.35

Step-by-step explanation:

the expression for compound interest is given as

$A = P(1 + \frac{r}{n})^{nt}$

A=$20,000

P=?

r=7.25%=0.0725

n=52 weeks

t=3 year

$20000= P(1 + \frac{0.0725}{52})^{52*3}\\\\20000= P(1 + \frac{0.0725}{52})^{156}\\\\20000= P(1 +0.00139)^{156}\\\\20000= P(1.00139)^{156}\\\\20000=1.2419P\\\\P=20000/1.2419\\\\P=16104.35$

the manager need to invest $16,104.35