6 Frank wants to save 3200 to take a vacation in 3 years To

6. Frank wants to save $3200 to take a vacation in 3 years. To the nearest dollar, how much will he need to invest in an account now with 4.5% APR compounding monthly?

amount = $ 3200

time = 3 years

rate of interest = 4.5% compounded monthly

applying compounded monthly formula

A = P ( 1 + r/n)^nt

3200 = P ( 1 + .045 / 12 )^12*3

3200 = P ( 1 + .045 / 12 )^36

P = 2796.6

so he must invest $ 2797 now

6. Frank wants to save $3200 to take a vacation in 3 years. To the nearest dollar, how much will he need to invest in an account now with 4.5% APR compounding m

6 Frank wants to save 3200 to take a vacation in 3 years To

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