SOLUTION: Badr wants to buy a car in 5 years. He estimates that he needs $12 000 to purchase a decent car. How much does he need to put in a savings account now, if the account pays 4.1% int

Question 1173698: Badr wants to buy a car in 5 years. He estimates that he needs $12 000 to purchase a decent car. How much does he need to put in a savings account now, if the account pays 4.1% interest compounded monthly?
Answer by ewatrrr(24785) (Show Source): You can put this solution on YOUR website!

 

Hi,

In General   0r 

A = Accumulated Amount $12,000

P= principal = 

r= annual rate = .041

n= periods per year = 12

t= years = 5

 

Calculate P 

Wish You the Best in your Studies. 

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