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?

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?

ganeshie8 · Answer

use compound interest formula

ganeshie8 · Answer

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

anonymous · Answer

Thank you

ganeshie8 · Answer

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