Depends if you want
1. find how much he will earn, find the differnce between that and 18000
2. see how much to invest till he will get 18000
A=
A=futre amount
P=present amout
r=rate in decimal
n=number of times per year ccompounded
t=time in years
1.
A=?
P=9000
r=0.06
n=4 (quarter means 4 times per year)
t=2
?=
?=
?=
?=10138.4 will be earned
18000-10138.4=7861.6 needed
2.
A=18000
P=9000+x
r=0.06
n=4 (quarter means 4 times per year)
t=2
18000=
18000=
18000=
divide both sides by 1.015^8
15978.8=9000+x
minus 9000 both sides
6978.8 needed
if he willnot be investing any more, he needs $7861.6 more
if he will invest more he will need to invest $6978.8 more
1. find how much he will earn, find the differnce between that and 18000
2. see how much to invest till he will get 18000
A=
A=futre amount
P=present amout
r=rate in decimal
n=number of times per year ccompounded
t=time in years
1.
A=?
P=9000
r=0.06
n=4 (quarter means 4 times per year)
t=2
?=
?=
?=
?=10138.4 will be earned
18000-10138.4=7861.6 needed
2.
A=18000
P=9000+x
r=0.06
n=4 (quarter means 4 times per year)
t=2
18000=
18000=
18000=
divide both sides by 1.015^8
15978.8=9000+x
minus 9000 both sides
6978.8 needed
if he willnot be investing any more, he needs $7861.6 more
if he will invest more he will need to invest $6978.8 more