Question 1179980: Is it 9,050.25? I want to check my answer.
Topic: Financial Mathematics
Anna wants to buy a car in two years and wants to have $10,000 for the purchase. How much will Anna need to deposit today in an account that earns 5% interest per year, compounded monthly?
Anna will need to deposit $ 9,050.25.
Found 3 solutions by ikleyn, MathLover1, greenestamps:
Answer by ikleyn(52879)   (Show Source):
You can put this solution on YOUR website! .
Correct.
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For all details and explanations, look into these two lessons
- Compound interest percentage problems
- Problems on discretely compound accounts
in this site, and learn the subject from there.
After reading these lessons, you will tackle such problems on your own without asking for help from outside.
Also, you have this free of charge online textbook in ALGEBRA-I in this site
- ALGEBRA-I - YOUR ONLINE TEXTBOOK.
The referred lessons are the part of this online textbook under the topic "Logarithms".
Save the link to this online textbook together with its description
Free of charge online textbook in ALGEBRA-I
https://www.algebra.com/algebra/homework/quadratic/lessons/ALGEBRA-I-YOUR-ONLINE-TEXTBOOK.lesson
to your archive and use it when it is needed.
Happy learning (!)
Answer by MathLover1(20850)  (Show Source):
Answer by greenestamps(13209)  (Show Source):
You can put this solution on YOUR website!
Check the answer on your own by finding out if $9050.25 invested for 2 years at %5 interest compounded monthly yields the correct $10,000.
 = $10,000
Yes, your answer is correct.
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