Answer:
$20,907
Explanation:
To calculate the amount that needs to be placed in an account now to have $22,500 in 3 years, you can use the formula for compound interest:
A = P * (1 + r/n)^(nt)
Where:
A = final amount
P = principal (the initial amount placed in the account)
r = annual interest rate as a decimal
n = number of times the interest is compounded in a year
t = number of years
In this case, r = 0.048, n = 52 (since the interest is compounded weekly), and t = 3.
So, we have:
A = 22,500
P = ?
r = 0.048
n = 52
t = 3
Plugging these values into the formula:
22,500 = P * (1 + 0.048/52)^(52 * 3)
Solving for P, we get:
P = 22,500 / (1 + 0.048/52)^(52 * 3)
P = 22,500 / (1 + 0.048/52)^(156)
Rounding to the nearest dollar, we get:
P = $20,907
So, a person should place $20,907 in the account now, if the account pays 4.8% annual interest rate, compounded weekly, to have $22,500 in 3 years.