SOLUTION: al wishes to save for a boat in 4 years. if he can invest $430 each month into an account earning 7.2%/ compounded monthly. how much could he spend on a boat after 4 years?
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Question 1083133: al wishes to save for a boat in 4 years. if he can invest $430 each month into an account earning 7.2%/ compounded monthly. how much could he spend on a boat after 4 years? Found 2 solutions by addingup, MathTherapy:Answer by addingup(3677) (Show Source):
You can put this solution on YOUR website! time: 4 years
saving: 430/month
interest: 7.2 compounded monthly
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A = 430{[1+(0.072/12)]^(12*4)-1}/(0.072/12)
A = 430[1+0.006)^(48)-1]/0.006
A = [430(1.333)-1]/0.006
A = 95,365
:
Moral: the power of compounding.
You can put this solution on YOUR website! al wishes to save for a boat in 4 years. if he can invest $430 each month into an account earning 7.2%/ compounded monthly. how much could he spend on a boat after 4 years?
Correct answer: In 4 years, he'll have:
IGNORE all other RIDICULOUS and/or NONSENSICAL answers!
I would love to invest $430 per month and accumulate over $95,000 after 4 years! That'd be a pretty hefty interest rate I'd be getting!
