adam40g said:
Can someone show me the steps how to do this problem? My sister is working on it and doesn't know where to start or how to get an answer.
A person wishes to have $15,000 cash for a new car 5 years from now. How much should be placed in an account now if the account pays 9.75% compound weekly? Compute the answer to the nearest dollar.
Why is everyone so mean here; this person has NO history of trying to get homework done.
"happy the distinguished" says:
1: "In the future, I will keep my rants to myself and not even bother posting.
2: I see some of these people for what they really are and I don't like the abuse of the system.
3: I put too much time in my studies to let someone get a free ride."
1: good idea!
2: so do we, BUT we wait to "see"; you ASSUME right away.
3: in other words: "because I suffered, EVERYBODY must suffer"
Adam, formula is:
P = F / (1 + i)^n , where:
P = Present value ( ? )
F = Future value (15000)
i = interest each period (.0975 / 52 = .001875)
n = number of periods ( 5 * 52 = 260)
P = 15000 / (1 + .001875)^260
P = 15000 / 1.001875^260 : you need a calculator for this!
P = 15000 / 1.627497~
P = 9216.60
In other words, a deposit of $9,216.60 in an account paying 9.75% compounded
weekly will accumulate to $15,000 over 5 years.