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31 December, 14:24

Wendy wants $15,000 saved in 6 years to make a down payment on a house. How much money should she invest now at 4.65% compounded annually in order to meet her goal?

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  1. 31 December, 14:32
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    A=P (1+R/100) ^n

    A=$15000, n=6 years, R=4.65

    Therefore,

    15000=P (1+4.65/100) ^6

    15000=P (1.3135)

    P=15000/1.3135

    =$11420 (to the nearest dollars)
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