Jamal wants to save $54,000 for a down payment on a home. How much will he need to invest in an account with 8.8% APR, compounding daily, in

Question

Jamal wants to save $54,000 for a down payment on a home. How much will he need to invest in an account with 8.8% APR, compounding daily, in order to reach his goal in 5 years? (Round your answer to the nearest cent.)

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Madelyn 2 weeks 2021-10-11T20:30:28+00:00 1 Answer 0

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    2021-10-11T20:31:56+00:00

    Answer:

    The investment money in the account is $ 34785.96  

    Step-by-step explanation:

    Given as :

    The amount after 5 years = $ 54,000

    The rate of interest = 8.8 % compounded daily

    The Time period = 5 years

    Let the invested money = P

    So, from compounded method

    Amount = Principal × (1+\dfrac{\textrm Rate}{365\times 100})^{365\times Time}

    $ 54,000 = P × (1+\dfrac{\textrm 8.8}{365\times 100})^{365\times 5}

    Or, 54,000 = P × (1.000241)^{1825}

    Or , 54,000 =  P × 1.55235

    ∴  P = \frac{54000}{1.55235}

    I.e P = $ 34785.96

    Hence The investment money in the account is $ 34785.96   answer

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