Amanda Nelson wants to buy a new car 3 years from now. In addition to trading in her current car, she estimates that she will need an additional $8,000. Compute the amount that Amanda must invest now if she can earn 5% compounded quarterly. (Use Tables 16-1A&B or 16-2A&B or a calculator.)

Question

Amanda Nelson wants to buy a new car 3 years from now. In addition to trading in her current car, she estimates that she will need an additional $8,000. Compute the amount that Amanda must invest now if she can earn 5% compounded quarterly. (Use Tables 16-1A&B or 16-2A&B or a calculator.)​

Alvini Givens · Accepted Answer

Final Answer : 0.05 ¸ 4 = 0.0125; 4 ´ 3 = 12;$8,000 ´ 0.86151 = $6,892.08 invest now​

Amanda Nelson wants to buy a new car 3 years from now. In addition to trading in her current car, she estimates that she will need an additional $8,000. Compute the amount that Amanda must invest now if she can earn 5% compounded quarterly. (Use Tables 16-1A&B or 16-2A&B or a calculator.)

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Learning Objectives

Related questions

Amanda Nelson wants to buy a new car 3 years from now. In addition to trading in her current car, she estimates that she will need an additional $8,000. Compute the amount that Amanda must invest now if she can earn 5% compounded quarterly. (Use Tables 16-1A&B or 16-2A&B or a calculator.)​

Definitions

Learning Objectives

Learning Objectives

Related questions

Amanda Nelson wants to buy a new car 3 years from now. In addition to trading in her current car, she estimates that she will need an additional $8,000. Compute the amount that Amanda must invest now if she can earn 5% compounded quarterly. (Use Tables 16-1A&B or 16-2A&B or a calculator.)