SOLUTION: If James needs $15,000 for his new car. How much does he have to invest now in a 36-month CD that has a rate of 3.75% compounded quarterly?

Question 138282: If James needs $15,000 for his new car. How much does he have to invest now in a 36-month CD that has a rate of 3.75% compounded quarterly?
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
If James needs $15,000 for his new car. How much does he have to invest now in a 36-month CD that has a rate of 3.75% compounded quarterly?
--------------
15000 = P(1 + (0.0375/4))^(4*3)
15000 = P(1.009375)^(12)
P = 15000/1,118486
P = $13,410.99
=================
Probably the answer is $13,411.00
=================
Cheers,
Stan H.
RELATED QUESTIONS
A retired woman has $80,000 to invest but needs to make $3,000 a year from the interest... (answered by MathTherapy,greenestamps)

Translate to a system of equations and solve. Mark wants to invest $10,000 to pay for... (answered by Boreal)

A bank offers a CD that pays a simple interest rate of 7.5%. How much must you put in... (answered by ikleyn)

Bill sells is vintage 1974 Road Runner for $9500. He uses the money to invest in a 36... (answered by stanbon)

A retired woman has $80,000 to invest but needs to make $6,000 a year from the interest... (answered by Theo)

1.Marina had an accident with her car and the repair bill came to $800. She didn�t have... (answered by ikleyn)

Shaun and Rebecca have a new grandson. How much money should they invest now so that he... (answered by ankor@dixie-net.com)

Frank and Alexandria have a new grandson. How much money should they invest now so that... (answered by josgarithmetic)

Hi! I have two questions that I'm pretty stumped on. Today a typical family of four... (answered by ewatrrr)