# SOLUTION: How much should you invest at 12% compounded monthly in order to purchase a \$25,000 car in 5 years?

Algebra ->  Algebra  -> Customizable Word Problem Solvers  -> Finance -> SOLUTION: How much should you invest at 12% compounded monthly in order to purchase a \$25,000 car in 5 years?      Log On

 Ad: Over 600 Algebra Word Problems at edhelper.com Ad: Algebra Solved!™: algebra software solves algebra homework problems with step-by-step help! Ad: Algebrator™ solves your algebra problems and provides step-by-step explanations!

 Word Problems: Money, Business and Interest Solvers Lessons Answers archive Quiz In Depth

 Question 170112: How much should you invest at 12% compounded monthly in order to purchase a \$25,000 car in 5 years?Answer by checkley77(12569)   (Show Source): You can put this solution on YOUR website!x(1+.12/12)^5*12=25,000 x(1.01)^60=25,000 x*1.8167=25,000 x=25,000/1.8167 x=13,761 needs to be invested for 5 years. Proof: 13,761(1+.12/12)^5*12=25,000 13,761(1.01)^60=25,000 13,761*1.8167=25,000 25,000~25,000