SOLUTION: in 54 months, bill wants to build a $20,000 three-season room addition to his house. How much should he invest now at 5.25% simple interest to have enough for the addition in 52 mo

SOLUTION: in 54 months, bill wants to build a $20,000 three-season room addition to his house. How much should he invest now at 5.25% simple interest to have enough for the addition in 52 mo

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Question 1074808: in 54 months, bill wants to build a $20,000 three-season room addition to his house. How much should he invest now at 5.25% simple interest to have enough for the addition in 52 months?
Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website!
P=Po(1+r)^n
20000=Po(1.0525)^13/3, the 13/3 is 4 1/3 years that he will need the money.
20000=Po(1.248) but don't round until end
divide both sides by 1.248
=$16022.64
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