Compound Interest Math Questions Please Help? - pizza oven plans
1. Kristen wants to spend $ 15,000 on a new car in 4 years. How much money have to invest today at 9.5% compounded semi-annually, enough to buy the car?
2. Ginni Pizza expects to save $ 15,000 to purchase new pizza in the oven for 5 years. How have invested a lot today are compounded at 4.5% / a semi-annually for your needs?
Please send your work so that you can understand \\ \\ \\ \\ \\ \\ \\ \\ u0026lt, THANK YOU!
Pizza Oven Plans Compound Interest Math Questions Please Help?
Sunday, January 24, 2010
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1 comment:
1.
Biannual means twice a year. 4 years from now will be 8 payments of interest, each of 9.5 / 2 = 4.75%
This may be the X of the initial investment multiplied by (1 0.0475) ^ 8-15000 after 4 years. We find X
X = 15000 / [1.0475 ^ 8] = 10,348.06161
So when Kristen will be sufficient to invest $ 10,348.07 for a car in 4 years.
2.
Using the same method as above:
X = 15000 / [1.0225 ^ 10] = 12,007.65199
Hope it helps :-)
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