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Mathematics 14 Online
OpenStudy (anonymous):

You plan to buy a $12,000 sailboat in four years. How much should you invest now, at 7.3% simple interest, to have enough for the boat in four years? (Round to the nearest cent.)

OpenStudy (dtan5457):

I can help you with this. First, set up an equation. This may be tricky, but let me show you.

OpenStudy (dtan5457):

A=P(1+(0.073)(4)

OpenStudy (dtan5457):

Now, just plug it in and make it easier. 12000=1.292p You get this from multiplying 0.073 (interest rate) by 4 years, to .292, plus the regular fixed 1.

OpenStudy (dtan5457):

12000=1.292p That, simply divide and you get $9287.93

OpenStudy (dtan5457):

More understandable?

OpenStudy (anonymous):

ok thats what i got thank you

OpenStudy (dtan5457):

Feel free to pass a medal if that helped clarified things ;)

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