145k views
5 votes
Wendy wants $15,000 saved in 6 years to make a down payment on a house. How much money should she invest now at 4.65% compounded annually in order to meet her goal?

1 Answer

0 votes
A=P(1+R/100)^n
A=$15000, n=6 years, R=4.65
Therefore,
15000=P(1+4.65/100)^6
15000=P(1.3135)
P=15000/1.3135
=$11420 (to the nearest dollars)
User Thiruvenkadam
by
8.2k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.