Peter is contributing money to an investment account so that he can purchase a house in five years. Peter plans to contribute six payments of $3,000 a year--the first payment will be made today (t = 0), and the final payment will be made five years from now (t = 5). If he earns 11 percent in his investment account, how much money will he have in the account five years from now (at t = 5)?

Peter is contributing money to an investment account so that he can purchase a house in five years. Peter plans to contribute six payments of $3,000 a year--the first payment will be made today (t = 0), and the final payment will be made five years from now (t = 5). If he earns 11 percent in his investment account, how much money will he have in the account five years from now (at t = 5)?

College Algebra

1st Edition

ISBN:9781938168383

Author:Jay Abramson

Publisher:Jay Abramson

Chapter7: Systems Of Equations And Inequalities

Section7.2: Systems Of Linear Equations: Three Variables

Problem 64SE: You inherit one hundred thousand dollars. You invest it all in three accounts for one year. The...

See similar textbooks

Similar questions

Hsu-Mei wants to save 5,000 for a down paymenton a car. To the nearest dollar, how much will sheneed to invest in an account now with 7.5 APR,compounded daily, in order to reach her goal in 3 years?
You inherit one hundred thousand dollars. You invest it all in three accounts for one year. The first account pays 4% compounded annually, the second account pays 3% compounded annually, and the third account pays 2% compounded annually. After one year, you earn $3,650 in interest. If you invest five times the money in the account that pays 4% compared to 3%, how much did you invest in each account?
Drew wants to save 2,500 to go to the nextWorld Cup. To the nearest dollar, how much willhe need to invest in an account now with 6.25 APR, compounding daily, in order to reach his goalin 4 years?
Interest Ron Hampton needs to choose between two investments: One pays 6% compounded annually, and the other pays 5.9% compounded monthly. If he plans to invest 18,000 for 2 years, which investment should he choose? How much extra interest will he earn by making the better choice?