Question

Pat and Wanda opened an investment account to save for a new home. Their goal is to have $45,000 saved in 5 years. The account guarantees an 8% rate of return compounded annually. How much do they need to put into the account right now (balance is $0) to achieve their goal? 28,458.22 $30,626.24 $39,546.11 $41,667.54

Name: pat and wanda opened an investment account to save for a new home their goal is to have 45000 saved in 5 years the account guarantees an 8 rate of return compounded annually how much do they 07694
Uploaded: 2020-07-05T16:06:09-08:00
Duration: 2 min 17 s
Channel: Vishal Parmar
Description: pat and wanda opened an investment account to save for a new home their goal is to have 45000 saved in 5 years the account guarantees an 8 rate of return compounded annually how much do they 07694

          Pat and Wanda opened an investment account to save for a new home. Their goal is to have $45,000 saved in 5 years. The account guarantees an 8% rate of return compounded annually. How much do they need to put into the account right now (balance is $0) to achieve their goal? 28,458.22 $30,626.24 $39,546.11 $41,667.54

Added by Ryan G.

Elementary and Intermediate Algebra

Alan S. Tussy, R. David Gustafson 5th Edition

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Solved by Expert Vishal Parmar

07/05/2020

Step 1

Pat and Wanda want to know the initial amount they need to invest to reach $45,000 in 5 years with an 8% annual compound interest rate. The formula for compound interest is: \[ A = P \left(1 + \frac{r}{n}\right)^{nt} \] where: - $ A $ is the future value of the Show more…

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Pat and Wanda opened an investment account to save for a new home. Their goal is to have $45,000 saved in 5 years. The account guarantees an 8% rate of return compounded annually. How much do they need to put into the account right now (balance is $0) to achieve their goal? 28,458.22 $30,626.24 $39,546.11 $41,667.54