SOLUTION: Barbara knows that she will need to buy a new car in 2 years. The car will cost $15000 by then. How much should she invest now at 6%, compounded quarterly, so that she will have en

SOLUTION: Barbara knows that she will need to buy a new car in 2 years. The car will cost $15000 by then. How much should she invest now at 6%, compounded quarterly, so that she will have en

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Question 346843: Barbara knows that she will need to buy a new car in 2 years. The car will cost $15000 by then. How much should she invest now at 6%, compounded quarterly, so that she will have enough to buy a new car? Round to the nearest cent. Please show equation and work.
Answer by rfer(16322) (Show Source): You can put this solution on YOUR website!
A=P(1+r/n)^t*n
15000=x(1+0.06/4)^2*4
15000=x(1+0.015)^8
15000=x*1.126493
x=$13,315.66
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