SOLUTION: .John decides to start saving money for a new car. He knows he can invest money into an account which will earn 6.5% APR, compounded weekly, and would like to have saved $10,000 af

Question 996974: .John decides to start saving money for a new car. He knows he can invest money into an account which will earn 6.5% APR, compounded weekly, and would like to have saved $10,000 after 5 years.
How much money will he need to invest into the account now so that he has $10,000 after 5 years?
Determine the APY (Annual Percent Yield) for the account.
Determine the 5-year percent change for the account.
If you could answer any of these I would be extremely grateful... I am very confused! Thanks!

Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
John decides to start saving money for a new car. He knows he can invest money into an account which will earn 6.5% APR, compounded weekly, and would like to have saved $10,000 after 5 years.
How much money will he need to invest into the account now so that he has $10,000 after 5 years?
--------
A(t) = P(1+(r/n))^(nt)
----
10,000 = P(1+(0.065/52))^(52*5)
----
10,000 = P(1.00125)^260
---
10,000 = P*1.38375
----
P = $7226.74 (amt he must invest)
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Cheers,
Stan H.
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Determine the APY (Annual Percent Yield) for the account.
Determine the 5-year percent change for the account.
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