SOLUTION: in 54 months, Bill wants to build a $20,000 three-season room addition on his house. How much should he invest now at 5.25% simple interest to have enough for the addition in 52 mo
Algebra ->
Customizable Word Problem Solvers
-> Finance
-> SOLUTION: in 54 months, Bill wants to build a $20,000 three-season room addition on his house. How much should he invest now at 5.25% simple interest to have enough for the addition in 52 mo
Log On
Question 1074704: in 54 months, Bill wants to build a $20,000 three-season room addition on his house. How much should he invest now at 5.25% simple interest to have enough for the addition in 52 months? Answer by jorel1380(3719) (Show Source):
You can put this solution on YOUR website! The interest rate is 5.25% a year, or 12 months. Let n be the initial amount Bill needs to deposit. Then:
20000=n x (1+((52/12) x .0525)
20000=1.2275n
n=20000/1.2275=$16293.279 as the initial deposit Bill has to make to afford the new addition. ☺☺☺☺
