SOLUTION: Jerome will be buying a used car for ​$7,000 in 3 years. How much money should he ask his parents for now so​ that, if he invests it at 8​% compounded continuously​, he w

Algebra.Com
Question 1140189: Jerome will be buying a used car for ​$7,000 in 3 years. How much money should he ask his parents for now so​ that, if he invests it at 8​% compounded
continuously​, he will have enough to buy the​ car?
Jerome should ask for $__

Answer by Boreal(15235)   (Show Source): You can put this solution on YOUR website!
x*e^(0.08*3)=7000
x*e^0.024=7000
x=7000/1.271 (round at end)
=$5506.40

RELATED QUESTIONS

Jerome will be buying a used car for ​$5 comma 5,000 in 4 years. How much money... (answered by Alan3354)
Frank and Alexandria have a new grandson. How much money should they invest now so that... (answered by josgarithmetic)
Shaun and Rebecca have a new grandson. How much money should they invest now so that he... (answered by ankor@dixie-net.com)
Thanks for the previous question answered. Pls, help me in this one also Cindy will... (answered by stanbon)
David and Nicole have a new grandson. How much money should they invest now so that he... (answered by mananth)
Hello! I would like to check my solution. Mandy will require $11,000 in 2 years to... (answered by ankor@dixie-net.com)
Cindy will require $15,000 in 2 years to return to college to get an MBA degree. How much (answered by mathmate)
Omar and Krystal have a new grandson. How much money should they invest now so that he... (answered by MathTherapy)
Ricky and Krystal have a new grandson. How much money should they invest now so that he... (answered by Boreal)