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.)

Question

dtan5457 · Answer

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

dtan5457 · Answer

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

dtan5457 · Answer

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.

dtan5457 · Answer

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

dtan5457 · Answer

More understandable?

anonymous · Answer

ok thats what i got thank you

dtan5457 · Answer

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