Your brother would like to have $ 30,000 in 2 years for the purchase of a new car. What monthly payment should he make into an account paying 5% per year compounded monthly to attain his goal? $ 1,201.14 $ 1,191.14 $ 1,161.14 $ 1,171.14 $ 1,231.14
Added by Amy V.
Step 1
Using the formula for compound interest: FV = PV * (1 + r/n)^(nt) where: FV = future value PV = present value (initial amount) r = annual interest rate (decimal) n = number of times interest is compounded per year t = number of years In this case: PV = $0 Show more…
Show all steps
Close
Your feedback will help us improve your experience
Madhur L and 87 other Algebra educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
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 $6.75 \%$ compounded weekly? Compute the answer to the nearest dollar.
Madhur L.
Rich needs $\$ 50,000$ for a down payment on a home in 5 years. How much must he deposit into an account that pays 6$\%$ interest, compounded quarterly, in order to meet his goal?
Banking Services
Present Value of Investments
Stephen plans to purchase a car 5 years from now. The car will cost 32,000 at that time. Assume that Stephen can earn 7.32 (compounded monthly on his money.) How much should he set aside today for the purchase (Round to two decimal places and show all work.)
Narayan H.
Recommended Textbooks
Elementary and Intermediate Algebra
Algebra and Trigonometry
Transcript
18,000,000+
Students on Numerade
Trusted by students at 8,000+ universities
Watch the video solution with this free unlock.
EMAIL
PASSWORD