The manager of a technology store wants to save $20,000 in 3 years to make a down payment on a condominium.

The manager of a technology store wants to save $20,000 in 3 years to make a down payment on a condominium. How much (in dollars) does the manager need to invest at the beginning of each week into an account that earns 7.25% interest compounded weekly

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  1. $16,104.35

    Step-by-step explanation:

    the expression for compound interest is given as

    [tex]A = P(1 + \frac{r}{n})^{nt}[/tex]

    A=$20,000

    P=?

    r=7.25%=0.0725

    n=52 weeks

    t=3 year

    [tex]20000= P(1 + \frac{0.0725}{52})^{52*3}\\\\20000= P(1 + \frac{0.0725}{52})^{156}\\\\20000= P(1 +0.00139)^{156}\\\\20000= P(1.00139)^{156}\\\\20000=1.2419P\\\\P=20000/1.2419\\\\P=16104.35\\[/tex]

    the manager need to invest $16,104.35

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