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 458065: 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?
I keep getting off track on this one. Thank you so much for your help.
Answer by rfer(16322) About Me  (Show Source):
You can put this solution on YOUR website!
32000=P(1+0.0375/365)^365*5
32000=P(1.00010274)^1825
32000=P*1.21
32000/1.21=P
P=$26,446.28