SOLUTION: John decides to start saving money for a new car. He knows he can invest money into an account which will earn 6.5% APR, compounded weekly, and would like to have saved $10,000 aft

Algebra ->  Percentages: Solvers, Trainers, Word Problems and pie charts -> SOLUTION: John decides to start saving money for a new car. He knows he can invest money into an account which will earn 6.5% APR, compounded weekly, and would like to have saved $10,000 aft      Log On


   

Question 998731: John decides to start saving money for a new car. He knows he can invest money into an account which will earn 6.5% APR, compounded weekly, and would like to have saved $10,000 after 5 years. Determine the 5-year percent change for the account.
Can't figure out how to solve this problem- please explain. Thank you!!!
Answer by MathTherapy(10552) About Me  (Show Source):
You can put this solution on YOUR website!
John decides to start saving money for a new car. He knows he can invest money into an account which will earn 6.5% APR, compounded weekly, and would like to have saved $10,000 after 5 years. Determine the 5-year percent change for the account.
Can't figure out how to solve this problem- please explain. Thank you!!!
Use the present value formula: P+=+A%281+%2B+i%2Fm%29%5E%28mt%29 to find the present value or amount to be invested today. You should get a present value of: $7,226.74.

Percent change: highlight_green%28highlight_green%28%28%2810000+-+7226.74%29%2F7226.74%29+%2A+100%29%29

Do the calc.!