SOLUTION: If you need $50,000 eight years from now, what is the minimum amount of money you need to deposit into a bank account that pays 6% annual interest, compounded (give your answers t
Algebra.Com
Question 1206586: If you need $50,000 eight years from now, what is the minimum amount of money you need to deposit into a bank account that pays 6% annual interest, compounded (give your answers to the nearest cent):
(a) annually? $
(b) monthly? $
(c) daily (assuming 365 days in a year)?
Answer by math_tutor2020(3816) (Show Source): You can put this solution on YOUR website!
Answers:
(a) 31370.62
(b) 30976.20
(c) 30940.39
--------------------------------------------------------------------------
Work Shown for Part (a)
A = P*(1+r/n)^(n*t)
50000 = P*(1+0.06/1)^(1*8)
50000 = P*1.59384807
P = 50000/1.59384807
P = 31370.61865627
P = 31370.62
--------------------------------------------------------------------------
Work Shown for Part (b)
A = P*(1+r/n)^(n*t)
50000 = P*(1+0.06/12)^(12*8)
50000 = P*1.61414271
P = 50000/1.61414271
P = 30976.19540716
P = 30976.20
--------------------------------------------------------------------------
Work Shown for Part (c)
A = P*(1+r/n)^(n*t)
50000 = P*(1+0.06/365)^(365*8)
50000 = P*1.61601065
P = 50000/1.61601065
P = 30940.39015151
P = 30940.39
RELATED QUESTIONS
1.If you need $20000 six years from now, what is the minimum amount of money you need to... (answered by ikleyn)
If you need $20,000 six years from now, what is the minimum amount of money you need to... (answered by Theo)
Need help answering this question please. Have to have it done by tonight.
3) The... (answered by Nate)
You want to have $500,000 when you retire in 10 years. If you can earn 3% interest... (answered by Theo,ikleyn)
Can you help me? I need another question answered.
Suppose you deposit $10,000 for 2... (answered by stanbon)
You have $10,000.00 to invest, at 5% annually and you keep the money invested for 10... (answered by rfer)
Suppose you found a CD that pays 3.9% interest compounded monthly for 7 years.
If you... (answered by ikleyn)
I NEED HELP WITH THIS PROBLEM TUTORS. THANKS
THE FORMULA FOR CALCULATING THE AMOUNT OF... (answered by MathLover1)
The formula for calculating the amount of money returned for an initial deposit money... (answered by jim_thompson5910)