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% compounded semiannually to have the funds needed?

Question

Conner Scott

Mathematics

26 January, 20:58

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% compounded semiannually to have the funds needed?

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Answers (1)

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Jacqueline Mercer · Answer 1

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