Question

Financial Math Question, will fan and medal! Please help really need it!

Aaron needs $17,450 to purchase a motorcycle. How much money will hennaed to invest today in a savings account earning 3.8% interest, compounding monthly, to have enough money to purchase the boat in six yesars?

A. $1,190.11
B. $11,075.97
C. $13,897.37
D. $17,056.70

Answer 1

A=P(1+r/n)^nt
A is the ending amount,
P is the beginning amount,
r is the interest rate (expressed as a decimal),
n is the number of compoundings a year,
t is the total number of years.

If interest is compounded yearly, then n = 1; if semi-annually, then n = 2; quarterly, then n = 4; monthly, then n = 12; weekly, then n = 52; daily, then n = 365;

Answer 2

solve for P
P=A/(1+r/n)^nt

Answer 3

A=17450
r=3.8/100
n=12
t=6