SOLUTION: Badr wants to buy a car in 5 years. He estimates that he needs $12 000 to purchase a decent car. How much does he need to put in a savings account now, if the account pays 4.1% int

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Question 1173698: Badr wants to buy a car in 5 years. He estimates that he needs $12 000 to purchase a decent car. How much does he need to put in a savings account now, if the account pays 4.1% interest compounded monthly?
Answer by ewatrrr(24785) About Me  (Show Source):
You can put this solution on YOUR website!
 

Hi,

In General A%28t%29+=+P%281%2Br%2Fn%29%5E%28nt%29  0r P+=+A%28t%29%2F%28%281%2Br%2Fn%29%5E%28nt%29%29

A = Accumulated Amount $12,000

P= principal = 

r= annual rate = .041

n= periods per year = 12

t= years = 5

 P+=+12000%2F%28%281%2B.041%2F12%29%5E%2860%29%29

Calculate P 

Wish You the Best in your Studies.