mollyamess121 mollyamess121
  • 28-12-2017
  • Mathematics
contestada

How much would Carol have to invest today at 6.4% compounded annually to have $5200 for a vacation to China in three years?

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maritzamacario2 maritzamacario2
  • 28-12-2017
[5200(1+.064)³]-5200
[5200 (1.064)³]-5200
[5200(1.21)]-5200
6292-5200=1092 so this may be the answer
Answer Link
toporc
toporc toporc
  • 28-12-2017
The following formula for compound interest is needed:
[tex]A=P(1+r)^{t}[/tex]
Plugging the given values into the formula, we get:
[tex]5200=P(1.064)^{3}[/tex]
[tex]P=\frac{5200}{(1.064)^{3}}=4316.96[/tex]
The answer is: $4,316.96

Answer Link

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