SOLUTION: Suppose Mary needs $32,000 in five years for a new car. If her account pays 3.75% interest compounded daily, how much must she deposit today to have the money for the car? What is

Question 1139133: Suppose Mary needs $32,000 in five years for a new car. If her account pays 3.75% interest compounded daily, how much must she deposit today to have the money for the car? What is the term used for this value?

Answer by rothauserc(4718) (Show Source): You can put this solution on YOUR website!
32000 = P * (1 +(0.0375/365))^(5 * 365)
:
1.2062P = 32000
:
P = 26529.60
:
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Mary needs to deposit $26,529.60
:
P is the principal investment amount(initial deposit)
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:

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