SOLUTION: Aisha plans to invest some of her personal money today in a bank Certificate of Deposit (CD) at an interest rate of 5% compounded annually so she can later have $50,000 available f

Algebra ->  Finance -> SOLUTION: Aisha plans to invest some of her personal money today in a bank Certificate of Deposit (CD) at an interest rate of 5% compounded annually so she can later have $50,000 available f      Log On


   

Question 1146852: Aisha plans to invest some of her personal money today in a bank Certificate of Deposit (CD) at an interest rate of 5% compounded annually so she can later have $50,000 available for the purchase of a new heavy-duty pickup 4 years from now. What amount will Aisha need to invest today in order to have adequate funds available in 4 years?
Answer by ikleyn(52781) About Me  (Show Source):
You can put this solution on YOUR website!
.

50000 = A%2A%281%2B0.05%29%5E4,


where A is the amount to deposit today.


50000 = A%2A1.05%5E4


A = 50000%2F1.05%5E4 = 41135.12 dollars.    ANSWER