Question

please help.
Mark needs $26,700 to purchase a boat. How much money will he need to invest today in a savings account earning 4.6% interest, compounding quarterly, to have enough money to purchase the boat in 12 years?

$3,083.12

$15,422.28

$22,220.50

$25,266.90

Answer 1

@amistre64

Answer 2

Using the compound interest formula,
\[26,700=P\left(1+\frac{.046}{4}\right)^{4\times12}\]

Answer 3

Then solve for \(P\)

Answer 4

Ok so would I do what is in the parenthesis first?

Answer 5

Yes, simplify the red part first, then divide both sides by what you get.
\[26,700=P\color{red}{\left(1+\frac{.046}{4}\right)^{4\times12}}\]

Answer 6

i cant get an answer i have been trying. @sithsandgiggles

Answer 7

@ankit042

Answer 8

@NaCl

Answer 9

@AwesomeB

Answer 10

@kenbaby Trying solving the equation you will get your answer

Answer 11

@ankit042 i did try, after i solve whats in the parenthesis what is my next step

Answer 12

P is the variable in the equation solve the parenthesis
P=26700/(value in parenthesis)

Answer 13

For some reason I am not getting the right answer.

Answer 14

@ankit042

Answer 15

can you tell the value of parenthesis?

Answer 16

\[26,700=P\color{red}{\left(1+\frac{.046}{4}\right)^{4\times12}}\\
26,700=P\color{red}{\left(1.0115\right)^{48}}\\
P=\frac{26,700}{\left(1.0115\right)^{48}}=\frac{26,700}{1.73126}=\cdots\]

Answer 17

@sithsandgiggles im confused

Answer 18

@ankit042 can you help