SOLUTION: Carmen wants to invest some money so that she will have $10,000 in 5 years. The bank offers a rate of 6.5% compounded quarterly. How much should her investment be?

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Question 1194163: Carmen wants to invest some money so that she will have $10,000 in 5 years. The bank offers a rate of 6.5% compounded quarterly. How much should her investment be?
Answer by ikleyn(52776) About Me  (Show Source):
You can put this solution on YOUR website!
.

Let X be her investment.


Then, if you have necessary pre-requisites for this subject (which I hope you have), you can write an equation


    10000 = X%2A%281%2B0.065%2F4%29%5E%284%2A5%29.


From this equation 


    X = 10000%2F%281%2B0.065%2F4%29%5E20 = use your calculator = 7244.18  dollars.


ANSWER.  Carmen shoud invest  $7244.18.

Solved.

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For all details and explanations,  look into these two lessons
    - Compounded interest percentage problems
    - Problems on discretely compound accounts
in this site,  and learn the subject from there.


After reading these lessons,  you will learn all necessary prerequisites and 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  ( ! )