Question

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

Answer 1

The following formula for compound interest is needed:

`A=P(1+r)^(t)`
Plugging the given values into the formula, we get:

`5200=P(1.064)^(3)`

`P=(5200)/((1.064)^(3))=4316.96`
The answer is: $4,316.96

Answer 2

[5200(1+.064)³]-5200
[5200 (1.064)³]-5200
[5200(1.21)]-5200
6292-5200=1092 so this may be the answer