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Barbara knows that she will need to buy a new car in 3 years . The car will cost $15000 by then. How much should she invest now at 8%, compo

Home/Math/Barbara knows that she will need to buy a new car in 3 years . The car will cost $15000 by then. How much should she invest now at 8%, compo

Barbara knows that she will need to buy a new car in 3 years . The car will cost $15000 by then. How much should she invest now at 8%, compo

Question

Barbara knows that she will need to buy a new car in 3 years . The car will cost $15000 by then. How much should she invest now at 8%, compound quarterly,so that she will have enough to buy a new car?

The formula for compounded interest is , where A is the desired amount, P is the amount you invest, r is the decimal rate, n is the number of times per year you compound the interest, and t is the number of years. You know A to be 15000, r to be 8% or 0.08, n to be quarterly or 4, and t to be 3. To find P, you can set up the following equation:

## Answers ( )

Answer:Around $11827.40

Step-by-step explanation:The formula for compounded interest is , where A is the desired amount, P is the amount you invest, r is the decimal rate, n is the number of times per year you compound the interest, and t is the number of years. You know A to be 15000, r to be 8% or 0.08, n to be quarterly or 4, and t to be 3. To find P, you can set up the following equation:

dollars

Hope this helps!