## anonymous 3 years ago 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?

1. anonymous

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

2. anonymous

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

3. anonymous

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. anonymous

thank you so much!

5. anonymous

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

6. anonymous

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