Question

james wants to buy a new jeep in 5 years. He estimates the jeep will cost $15,000. Assume james invests $10,000 now at 12% interest compounded semiannually. Will james have enough money to buy his jeep at the end of 5 years?

Answer 1

use compound interest formula

Answer 2

\(\large FV = PV (1 + \frac{r}{n})^{n t}\)

Answer 3

Thank you

Answer 4

\(FV\) : Future Value
\(PV\) : Present Value
\(r\) : rate of interest
\(n\) : # of compounding intervals per year
\(t\) : time in years