SOLUTION: Suppose Mary needs $32,000 in five years for a new car. If her account pays 3.75% interest compounded daily, how much must she deposit today to have the money for the car? What is
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Question 1139133: Suppose Mary needs $32,000 in five years for a new car. If her account pays 3.75% interest compounded daily, how much must she deposit today to have the money for the car? What is the term used for this value?
You can put this solution on YOUR website! 32000 = P * (1 +(0.0375/365))^(5 * 365)
:
1.2062P = 32000
:
P = 26529.60
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Mary needs to deposit $26,529.60
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P is the principal investment amount(initial deposit)
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