Question

Adam wishes to have $17,000 available in 22 years to purchase a new car for his son as a gift for his college graduation. To accomplish this goal, how much should Adam invest now in a CD that pays 1.94% interest compounded monthlyHow much should Adam invest now? (Round to the nearest Cont as needed.)

Answer 1

Data:

Amount= $17000

time= 22 years

rate= 1.94%

n=12 months

`\begin{gathered} P=(A)/((1+(r)/(n))^((n\cdot t))) \\ P=(17000)/((1+(0.0194)/(12))^((12\cdot22))) \\ P=11097.9\approx11098 \end{gathered}`