Problema Solution
Finance: A person wants to have $25,000 cash for a new car 5 years from now. How much should be placed in an account now if the amount pays 4.75% compound weekly? Compute the answer to the nearest dollar
Answer provided by our tutors
25000 = P(1 + 0.0475/52)^(5*52)
25000 = 1.2679...P
Note: I used my graphing calculator. If you do use an approximate value, you may have a different answer than below.
P = $19717
The person should invest $19717