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21 votes
21 votes
Megan wants to buy a designer handbag and plans to earn the money from babysitting. Suppose the interest rate is 8% and she is willing to wait one year to purchase the bag. How much babysitting money will she need to earn today to buy the bag for $400 one year from now? (Enter just the number in dollars without the $ sign or a comma and round off decimals to the closest integer, i.e., rounding $30.49 down to $30 and rounding $30.50 up to $31.)

User Rashid
by
3.3k points

1 Answer

29 votes
29 votes

Answer:

370

Explanation:

FV = PV ( 1 + i) i = interst in decimal

400 = PV ( 1.08)

PV = 400 / 1.08 =

User Eldiyar Talantbek
by
3.0k points