Question

Jamal wants to save $58,000 for a down payment on a home. How much will he need to invest in an account with 8.2% APR, compounding daily, in order to reach his goal in 5 years? (Round your answer to the nearest cent.)

Answer 1

`\begin{gathered} A\text{ = P\lparen1+r\rparen}^t \\ 58000\text{ = P\lparen1+}(8.2\%)/(365))^(5*365) \\ 38493.49\text{ = P \lparen assuming 365 days in a year\rparen} \end{gathered}`

Answer: $38493.49