SOLUTION: Charlie wants to buy a $1000 TV in 6 months. How much should he invest now at 3% simple interest to have the money in 6 months?

Algebra ->  Customizable Word Problem Solvers  -> Finance -> SOLUTION: Charlie wants to buy a $1000 TV in 6 months. How much should he invest now at 3% simple interest to have the money in 6 months?      Log On

Ad: Over 600 Algebra Word Problems at edhelper.com


    

Question 744675:
Charlie wants to buy a $1000 TV in 6 months. How much should he invest now at 3% simple interest to have the money in 6 months?
Answer by checkley79(3341) About Me  (Show Source):
You can put this solution on YOUR website!
P(1+R)^T
R=.03/2 (3% FOR 6 MO.)
T=.5 (6 MO.)
X(1+.03/2)^.5=1,000
X(1+.015)^.5=1,000
X(1.015)^.5=1,000
1.0124X=1,000
X=1,000/1.0124
X=$987.75 NEEDS TO BE INVESTED.