## greenisthecolour Group Title Jackie Rich would like to buy a \$19,700 Toyota hybrid car in 5 years. Jackie wants to put the money aside now. Jackie’s bank offers 10% interest compounded semiannually. How much must Jackie invest today? one year ago one year ago

1. RoseyPlum13 Group Title

I don't have the calculator to do the exponents, but I can help you out to that point.

2. RoseyPlum13 Group Title

The equation I looked up said A = P(1 + r/n) ^nt

3. RoseyPlum13 Group Title

A is for ending amount so 19700 P is beginning amount which is unknown r is interest rate (as decimal) so .1 n is number of compounds a year, so 2 t is total number of years $19700=P(1+\frac{ .1 }{ 2 })^{2(5)}$

4. greenisthecolour Group Title

thank you so much!

5. RoseyPlum13 Group Title

Your welcome, but just in case it gave me another equation to help with this. Do you think you will need it?

6. RoseyPlum13 Group Title

$\frac{ A }{ (1+\frac{ r }{ n })^{nt} }=P$