SOLUTION: Lorna Evenson is planning a trip to Alaska in 5 years. She calculated she will need $19,000 to cover her expenses. Lorna’s bank offers 8% interest compounded annually. What should
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-> SOLUTION: Lorna Evenson is planning a trip to Alaska in 5 years. She calculated she will need $19,000 to cover her expenses. Lorna’s bank offers 8% interest compounded annually. What should
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Question 1113171: Lorna Evenson is planning a trip to Alaska in 5 years. She calculated she will need $19,000 to cover her expenses. Lorna’s bank offers 8% interest compounded annually. What should Lorna invest now to have the needed funds? Answer by Alan3354(69443) (Show Source):
You can put this solution on YOUR website! She calculated she will need $19,000 to cover her expenses. Lorna’s bank offers 8% interest compounded annually. What should Lorna invest now to have the needed funds?
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FV = PV*(1 + r)^t r = interest rate, t = periods
19000 = PV*(1 + 0.08)^5
PV = 19000/(1.08^5)
Just calculator work now.
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PS In 5 years, she'll change her mind do something else.
