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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asked Dec 23, 2018 145k views

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Animatedgif · Answer 1 · 2018-12-29T22:10:52+0000

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

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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