contestada

You are planning to send your child to a summer camp in 9 months. The camp will cost you $1,200 at that time. You have decided to invest a lump sum of money now that will grow to $1,200 by the time it is needed. Assuming the money grows at a nominal annual interest rate of 12.2% compounded daily, how much money should you set aside now to have the funds available when needed?

Respuesta :

Answer:

x = $1095.09

Explanation:

let money that would be aside be taken as x

total money that would sum up after having money aside is $1200

time period of camp is 9 month

interest rate is given as 12.2% compounded daily

we know

Future value = present value ×× (1+ r)^(n)

[tex]1200 = x \times (1 + \frac{0.122}{365})^{\frac{9}{12} \times 365}[/tex]

[tex]1200 =  x \times 1.095[/tex]

x = $1095.09

Otras preguntas