Posted by **Leslie** on Tuesday, September 2, 2014 at 5:37pm.

Adrianna want to set aside some money for a vacation in 3 years. How much does Adrianna need to set aside today in order to have $8600 in 3 years if it is invested at 5% compounded annually. I am so confused!! Thanks for all your help!!

- What is P? -
**Damon**, Tuesday, September 2, 2014 at 5:42pm
1.05^3 = 1.157625

1.157625 * x = 8600

x = 7429.00

- What is P? -
**Henry**, Tuesday, September 2, 2014 at 8:43pm
P = Po*(1+r)^n = $8600

r = 5%/100% = 0.05

n = 1comp./yr. * 3yrs. = 3 Compounding

periods.

Po*(1.05)^3 = 8600

Po = 8600/1.05^3 = $7429.00 To be set

aside today.

## Answer This Question

## Related Questions

- compounded annually - Adrianna want to set aside some money for a vacation in 3 ...
- Finance - Dr. J. wants to buy a Dell computer which will cost $2,788 four years ...
- finance 200 - dr. j wants to buy a dell computer which will cost 2788 four years...
- Finance - Dr. J. wants to buy a Dell computer which will cost $2,788 four years ...
- Mathematics of growth rate! Need help! - Suppose that your child is born this ...
- Business - I want to retire in 20 years. I think that I need $500,000. I have $...
- msth - you are planning for your kids future education. he is 8 years old now ...
- math - How much must be set aside each month at 12% annual growth compounded ...
- finance - You would like to contribute $50,000 towards your grandchildâ€™s college...
- business math - The parents of a child have just come into a lare inheritance ...

More Related Questions